THE  SOCIAL  BETTERMENT  SERIES 

EDITED   BY 

SHAILER  MATHEWS,  D.D. 


CITIZENS 
IN   INDUSTRY 


s 


CITIZENS 
IN    INDUSTRY 


BY 


CHARLES  RICHMOND  HENDERSON,  D.D., Ph.D. 

PROFESSOR  OF  SOCIOLOGY  ANT3  HEAD  OF  THE  DEPARTMENT  OF  PRACTICAL 
SOCIOLOGY,  UNIVERSITY  OF  CHICAGO 


D.  APPLETON  AND   COMPANY 
NEW  YORK  AND  LONDON:    1915 


Copyright,   1915,  by 
D.  APPLETON  AND  COMPANY 


GENERAL   INTRODUCTION 

The  feeling  of  social  responsibility  which  char- 
acterizes our  day  has  led  to  severe  criticism  of 
various  phases  of  our  modern  world,  and  to  innum- 
erable plans  for  social  reconstruction.  In  con- 
sequence, the  actual  achievements  of  social  better- 
ment have  been  frequently  overlooked  in  our  sense 
of  imperative  tasks  and  our  distrust  of  Utopias. 
Nevertheless,  steady  advance  has  been  made  in  cor- 
recting evils  and  in  establishing  laws,  institutions, 
and  precedents  looking  toward  the  genuine  improve- 
ment of  social  conditions.  The  present  series  of  vol- 
umes undertakes  to  describe  accurately  this  advance 
for  the  general  reader.  Although  written  by  spe- 
cialists in  their  particular  fields,  the  plan  and  method 
of  each  volume  are  not  technical.  The  great  reading 
public  has  been  pretty  thoroughly  informed  as  to 
our  social  liabilities;  the  present  series  will  list  our 
social  assets.  Such  a  presentation  it  is  believed  will 
not  lead  to  a  complacent  optimism,  but  will  serve 
to  reassure  the  rapidly  growing  class  of  those  who 
are  ready  and  even  eager  to  join  in  all  practicable 
efforts  to  right  evils  but  who,  at  the  same  time,  wish 
to  maintain  the  continuity  of  social  evolution. 

Shailer  Mathews. 

V 


PREFACE 

This  volume  is  Dr.  Henderson's  last  contribu- 
tion to  the  cause  to  which  he  devoted  his  life.  The 
last  work  in  which  he  was  engaged  was  the  reading 
of  its  proof. 

The  service  which  Dr.  Henderson  rendered  the 
cause  of  human  welfare  was  largely  in  the  field  which 
this  volume  covers.  True,  his  interests  covered  also 
the  fields  of  penology  and  charity,  but  few  men  of 
our  day  have  a  more  accurate  knowledge  of  the 
conditions  affecting  the  workingman.  He  was 
called  repeatedly  into  service  by  his  city  and  his  state 
to  help  solve  industrial  problems  as  well  as  serving 
as  the  representative  of  the  United  States  upon  the 
International  Prison  Commission.  His  attitude  to- 
ward the  problems  of  our  industrial  order  was  a  re- 
markable combination  of  the  scientific  spirit  and 
warm  personal  sympathy.  There  are  few  men  who 
have  given  themselves  as  generously  or  more  intel- 
ligently to  the  needs  of  their  fellow-men,  and  his 
death  was  largely  due  to  his  efforts  as  chairman  of 
a  commission  appointed  by  the  Mayor  of  Chicago  to 
relieve  the  condition  of  that  city's  unemployed. 

vii 


Preface 

It  is  a  cause  for  profound  gratitude  that  in  the 
midst  of  his  overcrowded  life  he  found  time  to  write 
the  summary  of  the  efforts  that  are  actually  being 
made  to  better  the  situation  of  the  wage-earners 
throughout  the  world. 


CONTENTS 


I.  The  Situation  and  Its  Problems     .        .        .       i 

The  great  industry — Welfare  work — Outline 
of  organization  and  activities  along  industrial  bet- 
terment lines:  South  Works  of  the  Illinois  Steel 
Company,  South  Chicago,  Illinois — Governments 
as  employers — The  transition  from  philanthropy 
and  welfare  schemes  to  social  legislation. 

II.  Health  and  Efficiency:  The  Fundamental 

Interest  of  All  Citizens  .  .  .  .48 
The  national  interests  affected  by  efficiency  of 
workmen — Safety  devices — "Safety  First" — Dis- 
ease— Various  hygienic  measures  in  the  work- 
place— Cost  and  gain  of  safety  and  health  meas- 
ures— Organization  of  capitalist  managers  to  pro- 
mote safety  and  health — New  problems  for  the 
nation  to  face. 

III.  Economic    Inducement    to    Secure    Effi- 

ciency OF  Labor 117 

Profit-sharing — Thrift  measures  encouraged  by 
managers — Compensation  is  satisfactory. 

IV.  Methods  of  Improving  the  Conditions  of 

Home  Life  of  Employees         .        .        .  168 

Family  and  home  of  employees — The  dwelling  a 
primal  necessity  of  life — Benefits  of  improved  hous- 

ix 


Contents 


CHAPTER 


PAGE 


ing — A  suburban  plan — Conditions  of  successful 
plans — Standard  for  dwellings — Legal  obstacles — 
Cooperation  with  municipalities — Inspection  and 
control  of  dwellings — Octavia  Hill  methods. 

V.  Neglected    and    Homeless    Youthful    Em- 

ployees         187 

Responsibility — Homes     for     working     boys — 
Working  girls'  homes. 

VI.  Education  and  Culture        ....  200 

Vocational  education — Liberal   culture. 

VII.  Experiments  in  Industrial  Democracy       .  234 
Political    rights   of    the    w\ige-earner — The    de- 
mand for  self-government  in  the  shop — Training 

for  self-government:  representation  in  manage- 
ment, building  and  loan  associations,  education  in 
political  science,  neigliborhood  centers — Organiza- 
tion and  administration  of  betterment  methods 
within  an  establishment  or  in  a  trade  on  a  volun- 
tary basis — Seeking  for  a  basic  principle  of  agree- 
ment— Economic  wages — Arbitration — Attitude  of 
the  American  Federation  of  Labor  toward  arbi- 
tration. 

VIII.  ^Administration   of   Welfare    Work   and 

THE  Social  Secretary  ....  266 
Functions  of  social  secretary — The  social  secre- 
tary in  relation  to  the  principal — The  personal  re- 
lation between  employer  and  employee  mediated  by 
the  social  secretary — Natural  qualifications  of  a 
welfare  or  social  secretary — Educational  prepara- 
tion of  a  social  secretary  for  an  industrial  estab- 
X 


Contents 

CHAPTER  PAGE 

lishment — Health  conditions:  direction — Women 
secretaries — The  ideals  of  the  "capitalist  managers" 
— Educating  business  managers  in  social  politics. 

IX.  Moral  and  Religious  Influences  .  .  288 
The  moral  standards  in  industry — Religion: 
dangers  and  obstacles — Libraries:  advantage  and 
disadvantage — Protection  of  girls  in  work-places — 
Farming  out  the  task — Methods  of  Y.  M.  C.  A. 
in  industrial  camps — The  church — Ideals  and 
conclusion. 

Appendix.     List  of  establishments  which  have  organ- 
ized welfare  work         .         .         ,         .         .         .315 

Bibliography 329 

Index        .........  339 


INTRODUCTION 

The  title  is  chosen  to  indicate  the  point  of  view.' 
It  is  now  generally  agreed  that  all  feudal,  patri- 
archal, patronizing  factors  in  industry  must  be 
eliminated.  One  of  the  achievements  of  the  In- 
dustrial Revolution  was  to  take  the  wage-earner 
out  of  the  control  of  "status"  and  secure  to 
him  the  dignity,  security  and  personal  responsibility 
of  "free  contract"  in  a  political  and  legal  regime  of 
equality  before  courts,  legislatures  and  pubhc  ad- 
ministration. Workingmen  are  justly  sensitive  to 
any  hint  of  return  to  serfdom;  they  resent  any  at- 
tempt on  the  part  of  the  employer  to  direct  them  in 
their  enjoyments,  studies,  creeds,  worship  or  political 
action.    They  say  they  want  "justice,"  not  "charity." 

The  patriarchal,  feudal  relation  between  employer 
and  employee,  which  is  disappearing  in  Europe  and 
altogether  absent  in  America,  survives  in  Japan  and 
retains  much  influence  there.  The  legal  protection, 
even  since  the  factory  law  went  into  effect,  is  very 
meager;  the  care  of  the  workers  depends  on  the  char- 
acter and  disposition  of  the  managers,  which  vary 
greatly. 

The  Hon.  Kojiro  Matsukata  (D.C.L.,  Yale),  a 
distinguished  manufacturer,  proprietor  of  a  news- 
paper,   and    statesman    of    Japan,     recently   said  :^ 

^  Japan's  Message  to  America  (1914),  p.  117. 

xiii 


Introduction 


"There  is  in  Japan  a  social  relationship  between  em- 
ployer and  employee  that  does  not  prevail  in  your 
country.  It  is  the  relationship  of  lord  and  retainer. 
For  many  centuries,  Japan  was  under  a  feudal  sys- 
tem where  the  giver  of  'rok'  (or  annual  pension) 
was  the  lord,  while  the  recipient  of  it  was  the 
retainer.  Such  feudalistic  relations  between  payer 
and  payee  have  not  yet  altogether  died  away  in  this 
country,  though  they  are  gradually  diminishing  with 
the  capitalization  of  labor.  Even  to-day,  he  who 
pays  wages  is  allowed  to  assume  something  of  the 
mental  attitude  of  the  lord — not  in  a  despotic  but  in 
a  protectoral  sense — toward  those  who  receive  them. 
A  young  man  who  was  earning  his  school  expenses 
by  work  in  America  came  into  possession  of  a  lengthy 
letter  from  his  mother  left  behind  in  Japan,  repeat- 
edly advising  him  to  be  loyal  to  the  person  of  his 
master;  and  he  looked  around  to  find  to  his  renewed 
surprise  that  nobody  would  claim  in  the  Republic 
such  personal  loyalty  as  his  good  old  mother  must 
have  meant.  But  in  Japan  there  exist  many  subjects 
for  this  quasi-feudalistic  virtue.  .  .  .  My  American 
readers  may  think  that  the  comparative  scarcity  of 
strikes  in  Japan  is  due  to  lack  of  self-assertion  on  the 
part  of  the  laborers ;  but  that  is  not  quite  right.  The 
chief  explanation  must  be  found  in  their  active  loy- 
alty to  their  employer's  person,  rather  than  in  their 
passive  forbearance."  Rare  and  faint  are  the  sur- 
vivals of  this  feudal  feeling  in  America. 

Our  workmen  demand  "justice,"  but  justice  needs 
a  definition;  it  is  a  vague  word  and  is  used  with 

xiv 


Introduction 


various  meanings.  For  our  present  purpose  it 
means  "good  citizenship";  conduct  which  furthers 
the  life  process,  which  promotes  the  common  wel- 
fare, which  harmonizes  all  interests,  or  tends  to  do 
so.  The  word  "citizen"  implies  legal  and  political 
equality,  common  rights  and  reciprocal  duties,  obli- 
gation to  further  the  life  of  the  entire  people.  The 
special  relation  of  employer  and  employed  is  indi- 
cated by  the  word  "industry";  since  the  general 
principles  of  social  obligation  are  here  to  be  applied 
to  the  contacts  and  contracts  required  by  the  process 
of  producing  commodities  for  the  world's  markets, 
for  the  satisfaction  of  human  wants.  No  hint  of 
personal  superiority  or  inferiority  is  suggested  by  the 
title  "Citizens  in  Industry,"  and  it  clearly  describes 
the  relation  of  employer  to  employed  and  of  both 
to  the  city,  state  and  nation.  The  word  "citizen" 
also  points  to  a  common  brotherhood  in  the  realm  of 
ideals,  of  eternal  values. 

"Citizenship  in  Industry"  is  suggestive  of  proph- 
ecy; it  intimates  that  the  modern  worklngman  never 
can  be  morally  content  and  satisfied  as  long  as  his 
mind,  will  and  voice  count  for  nothing  in  the  direc- 
tion of  the  industry  and  its  product.  He  may  not  yet 
be  adequately  prepared  for  that  responsibility;  his 
ambition  may  outrun  his  education,  but  he  is  looking 
forward  to  it,  and  he  chafes  while  he  waits. ^ 

^Shadwell:    Industrial  Efficiency,  i,  177. 

"The  reign  of  the  benevolent  employer  is  over.  He  gets 
no  thanks,  and  the  tendency  is  all  in  the  direction  of  secur- 
ing such  conditiofis  of  employment  as  will  enable  the  em- 

XV 


Introduction 


The  illustrations  of  methods  and  principles  in  this 
book  will  be  drawn  from  a  vast  mass  of  actual  cases. 
While  advertisements  of  particular  corporations  will 
be  avoided  or  minimized,  specific  examples  must  be 
used  to  give  concrete  form  to  the  discussion.  If  it 
were  attempted  to  describe  all  the  known  schemes  of 
particular  establishments  in  detail,  the  result  would 
be  confusion,  duplication  and  just  complaint  of  par- 
tiality in  selection.  It  seems  wiser  to  present  the 
results  of  the  study  of  many  establishments  in  com- 
pact form,  the  principles  which  underlie  the  whole 
movement,  the  inventions  which  are  still  in  the  ex- 
perimental stage,  and  the  problems  yet  to  be  solved. 

The  conclusions  here  offered  are  based  on  numer- 
ous personal  visits  and  interviews  not  only  in  Amer- 
ica and  Europe,  but  also  in  important  establishments 
of  the  great  industry  in  India,  China,  and  Japan, 
where  European  examples  and  models  have  been 
adapted  to   Oriental   conditions.      No    one   country 

ployed  to  provide  their  own  benevolent  institutions."  ii, 
170-172. 

"Voluntary  institutions  may  be,  and  often  are,  more  ad- 
vantageous where  they  exist;  but  they  affect  such  a  very 
small  proportion  of  the  industrial  population — a  few  pin 
points  in  a  fifty-acre  field — that  they  hardly  count  in  a  gen- 
eral comparison. 

"What  labor  demands  in  a  modern  community  is  not 
favors,  but  justice;  not  gifts,  but  a  fair  share  of  the  takings, 
with  the  means  and  the  opportunity  to  provide  its  own  wel- 
fare institutions.  In  itself  that  is  a  sound,  wholesome  and 
proper  aspiration,  inseparable,  indeed,  from  the  organic 
development  of  society," 

xvi 


Introduction 


has  a  monopoly  of  patriotism,  public  spirit,  be- 
nevolence, and  invention.  Ideas  quickly  travel 
across  land  and  ocean.  The  magazines  and 
books  which  announce  new  methods  of  philan- 
thropy are  now  found  in  the  Parsee,  Hindu 
and  Mohammedan  counting-rooms  of  millionaire 
manufacturers  of  Bombay,  Calcutta,  Madras,  La- 
hore, Shanghai,  Tientsin  and  Osaka.  The  diffusion 
of  the  ideas  of  "welfare  work"  in  the  Orient  is  ex- 
tremely interesting.  One  of  the  most  hopeful  enter- 
prises of  young  China  is  the  Commercial  Press  of 
Shanghai,  publishers  of  educational  books,  employ- 
ing 1,400  persons,  with  a  payroll  of  about  $20,000 
per  month.  The  buildings  are  large  and  commodi- 
ous, well  lighted  and  ventilated;  sufficient  ground  has 
been  reserved  for  the  recreation  of  the  employees. 
About  four  hundred  women  and  girls  are  engaged  in 
the  bindery  and  elsewhere.  They  are  permitted  to 
leave  the  establishment  five  minutes  before  the  men. 
A  woman  Is  allowed  a  vacation  with  full  pay  one 
month  before  and  one  month  after  confinement. 
This  establishment  is  one  of  the  strongest  centers  of 
education  In  China  and  It  sets  an  example  which  will 
be  imitated  wherever  the  great  Industry  makes  con- 
quests. Wages  are  good;  a  bonus  is  given  in  propor- 
tion to  the  record  and  importance  of  the  employee's 
service,  and  a  certain  allowance  is  set  apart  as  pen- 
sion for  the  old  retired  employees  or  the  family  of 
the  deceased.  The  system  of  profit-sharing  is  intro- 
duced and  the  key  men  of  each  department  are  share- 
holders of  the   company.     Clean  and  comfortable 

xvii 


Introduction 


blocks  of  dwelling-houses  can  be  rented  at  moderate 
prices.  School  privileges  from  kindergarten  to  high- 
school  training  are  maintained  for  their  children. 
An  evening  school  is  also  kept  for  the  younger  mem- 
bers of  the  firm,  and  a  self-improvement  club,  with 
school  facilities,  has  been  opened  under  the  patron- 
age of  the  company.  A  small  hospital  is  established 
for  the  sick  employees.  Nine  hours'  work  and  Sun- 
day holidays  are  features  seldom  found  in  Chinese 
workshops.  While  this  attractive  example  is  rare  in 
China,  it  is  prophetic  and  will  be  influential  as  the 
Great  Industry  makes  its  way.^ 

A  list  of  many  books  and  articles  is  appended 
which  will  enable  the  reader  to  go  much  further  into 
special  questions  than  the  limits  of  this  book  permit. 
This  list  is  at  least  a  partial  acknowledgment  of  the 
author's  indebtedness  to  other  investigators  and 
students  and  will  be  a  partial  guide  to  travelers 
studying  "welfare  work,"  or  students  who  wish  to 
secure  further  details. 

If  some  practical  man  objects  to  a  discussion  of 
such  a  practical  subject  from  one  who  is  confessedly 
a  theorist  dwelling  in  an  academic  atmosphere,  the 
apology  may  be  offered  that  such  a  student  is  natur- 
ally as  free  from  partisan  bias  as  anyone  can  be 
who  has  convictions,  and  that  the  scientific  habit  of 
patient  collection  of  facts  and  criticism  of  materials 
may  be  some  assurance  of  reliability.  "Theory" 
does  not  mean  a  dream  or  a  guess,  but  a  broader 
view  of  the  facts  under  consideration  and  a  search 

^  Information  furnished  by  Mr.  Fong  S.  Sec. 
xviii 


Introduction 


for  causal  connections.  Practice  Is  blind  without 
theory  to  guide  It  by  a  vision  of  ends  and  ways,  and 
practice  needs  the  rational  justification  by  proof 
which  a  sound  theory  affords.  In  Goethe's  "Faust," 
the  popular  scorn  for  "academic  theory"  is  expressed 
in  the  oft  quoted  lines  : 

Gray,  dear  friend,  is  all  theory. 

And  green  alone  the  golden  tree  of  life. 

But  those  who  cite  this  passage  from  the  great  poet 

sometimes  forget  that  "Goethe  knew  very  well  why 

he  put  these  words  in  the  mouth  of  the  Devil."  ^ 

^See  Dr.  R.   von  Erdberg:     Das  Programme  der  Wohl- 
fahrtspflege. 


CITIZENS   IN   INDUSTRY 

CHAPTER    I 

THE  SITUATION  AND  ITS  PROBLEMS 
THE   GREAT    INDUSTRY 

I.  Industrial  evolution  has  advanced  through 
many  stages  and  forms  of  organization,^  Primitive 
industries  of  fishing  and  hunting  passed  into  pastoral 
and  agricultural  occupations.  Cannibalism  was  tem- 
pered by  domestication  of  captives  as  slaves.  Serf- 
dom gave  the  workman  a  measure  of  possession  but 
bound  him  to  soil  and  master.  The  system  under 
which  we  live  is  complex  and  varied;  for  the  house- 
hold industry  survives  in  a  great  part  of  the  earth 
and  competes  with  the  immense  shops  which  are  fur- 
nished with  the  finest  machinery  and  steam  power. 
In  the  great  urban  centers  of  manufacture  the  cap- 

^  For  details  see  Biicher:     Entstehung  der  Volkwirtschaft 
(Development  of  Industry). 

G.    Schmoller:      Grundriss    der    Allgemeinen    Volkwirt- 
schaftslehre. 

Herkner :     Die  Arbeiterfrage. 

A.  Toynbee:     The  Industrial  Revolution. 

Von  Zwiedeneck-Siidenhorst:     Sozialpolitik. 

I 


Citizens  in  Industry 


italist  management  system  is  monarch,  and  it  has 
transformed  the  face  of  the  world.  It  already  shows 
defects  and  signs  of  failure  and  transformation;  the 
Socialists  are  ready  to  inform  us  that  a  substitute  has 
been  found  in  their  methods;  while  poets  and  seers 
already  Imagine  a  system  which  will  supersede  So- 
cialism. No  organization  is  permanent;  all  is  fluent 
and  transitory;  but  just  now  we  have  to  work  with 
the  capitalist  manager  whose  achievements  are 
praised,  whose  faults  are  cursed,  but  whose  seat  on 
the  throne  at  present  is  firm.  Under  this  modern 
system  we  have  not  only  private  propert}%  but  con- 
trol of  property  used  in  production  in  relatively  few 
hands,  with  a  tendency  to  further  concentration  of 
commercial  power. 

The  industrial  group  is  composed  of  a  multitude 
of  operatives  and  their  families.  These  men  are 
equal  with  their  employers  before  the  law,  have  po- 
litical power  in  proportion  to  their  numbers,  if  they 
know  enough  to  use  it;  but  in  the  work-place  they 
are  subject  to  the  commands  of  men  who,  being  in 
control  of  all  the  materials  and  instruments  of  pro- 
duction, hold  over  them  literally  the  power  of  life 
and  death,  except  so  far  as  this  power  is  restricted 
by  fear  of  strikes,  humane  sentiment,  or  by  regula- 
tion of  law. 

2.  The  great  industry,  in  its  social  aspect,  is  a 
form  of  cooperation  between  capitalist  managers 
and  operatives  for  the  production  of  goods  wanted 
by  the  community.^     The  immediate  motive  on  one 

^  J.  A.  Hobson :    Work  and  Wealth. 

2 


The  Situation  and  Its  Problems 

side  is  profits,  on  the  other  wages,  and  what  these 
will  buy. 

The  modern  great  industry  is,  from  the  social 
point  of  view,  an  organized  method  of  cooperation 
in  production;  individuals  find  it  a  divider  of  men 
into  hostile  camps.  This  paradox  arises  from  the 
fact  that  the  elements  in  production  must  combine 
or  be  sterile — land,  labor,  capital  and  management. 
Isolated  they  are  barren;  only  in  cooperation  do  they 
bring  forth  commodities  which  satisfy  human  wants. 
The  contradiction  is  real,  not  imaginary.  The  very 
situation  gives  occasion  for  friction,  irritation  and 
conflict.  The  employer  and  capitalist  manager  estab- 
lishes a  business  to  gain  profits;  if  labor  costs  him 
more,  profits  are  less;  at  least  it  seems  so  to  the 
paymaster,  and  sometimes  this  is  true.  The  very 
phrase  "labor  cost"  means  different  things  to  the 
men  in  opposition:  to  the  manager  it  means  money 
paid  out  for  wages,  possible  abstinence  from  lux- 
uries and  risk  of  the  investment;  to  the  worker  it 
means  sweat,  toil,  weariness,  pain,  danger,  exhaus- 
tion, a  daily  surrender  of  vitality.^    The  antagonism 

*  J.  E.  Cairnes:  Some  Leading'  Principles  of  Political 
Economy  (1874),  p.  75.  The  "cost"  of  labor  involves  the 
elements  of  duration,  severity  or  irksomeness  and  risk  of 
injury.  "In  the  usual  exposition  of  the  doctrine  of  cost  of 
production  the  only  risk  taken  account  of  is  that  incurred 
by  the  capitalist;  but  this  is  merely  a  consequence  of  that 
habit  of  contemplating  the  work  of  production  exclusively 
from  the  capitalist's  standpoint."  Compare  J.  A.  Hobson : 
Work  and  Wealth,  ch.  v,  where  this  idea  of  Cairnes  is  devel- 
oped, 

3 


Citizens  in  Industry 


of  interest  may  be  softened,  modified,  attenuated; 
it  cannot  be  entirely  removed  by  any  means  yet  dis- 
covered. Rough  justice  must  ever  take  the  form  of 
estimate  and  compromise,  until  social  science  can 
make  its  calculation  of  values  much  more  exact  than 
it  has  yet  been  able  to  do,  and  laws  and  legal  tri- 
bunals have  been  evolved  for  an  equitable  division 
of  the  product.  The  most  advanced  employers  will 
try  experiments  which  will  help  to  supply  the  data 
for  a  judgment  when  the  time  is  ripe  for  law. 

There  are  cases  where  the  laborer  is  fully  recom- 
pensed for  more  costly  self-sacrifice  by  corresponding 
advantages;  and  there  are  situations  in  which  the 
employer  finds  higher  wages  and  better  conditions 
to  be  a  wise  and  paying  investment.  But  the  area 
of  advantage  in  expenditure  is  limited  and  its 
boundary  soon  reached;  then  a  real  conflict  must  be 
openly  faced  and  a  tolerable  compromise  accepted  as 
a  condition  of  continued  cooperation. 

In  strikes  and  lockouts  we  see  the  antagonism  in 
flame;  but  the  ashes  which  conceal  strife  are  never 
quite  cool ;  the  volcano  always  rumbles  and  smokes 
so  long  as  there  is  a  hot  place  down  below.  Socialists 
tell  us  that  the  conflict  can  never  cease  until  the 
whole  people,  through  some  form  of  representative 
government,  controls  the  process  and  the  distribu- 
tion of  the  product  over  which  the  battle  wages; 
but  that  question  is  for  the  future. 

3.  The  compromise  of  mutual  understanding  is 
reached  with  more  difficulty  partly  because  the  great 
industry  has  made  personal  relations  difficult  or  even 

4 


The  Situation  and  Its  Problems 

Impossible.  In  the  petty  relations  of  fishing,  agri- 
cultural and  village  industries,  master  and  man  talk 
out  their  difficulties  while  both  are  toiling  side  by 
side.  The  journeyman  knows  quite  closely  the 
profits  of  his  master  and  what  it  is  possible  for  him 
to  pay  in  wages.  But  in  a  great  steel  mill,  or  on  a 
railway,  the  capitalists  are  thousands  of  unknown 
stockholders,  the  managers  are  great  men  in  ma- 
hogany furnished  offices,  far  off  as  heaven.  The 
president  sits  on  Olympian  heights,  twenty  stories  up 
in  Broadway  or  Wall  Street,  New  York;  while  the 
section  hands  or  miners  in  Colorado  wonder  vaguely 
how  the  "old  man"  looks.  We  may  regret  the  good 
times  long  ago  when  employers  and  employees  were 
comrades;  but  weeping  will  not  save  the  ancient  sys- 
tem. The  impersonal  corporation,  with  no  body 
that  can  be  kicked  and  no  soul  to  feel  pity  or  re- 
morse, has  displaced  the  visible  and  tangible  owner 
who  was  himself  a  workman.  It  were  as  childish 
to  wish  for  the  moon  as  to  sigh  for  an  organization 
which  is  burled  beyond  recall. 

4.  The  social  necessity  of  some  kind  of  harmony 
and  adjustment  is  apparent.  The  waste  and  loss  of 
social  friction  are  enormous;  political  stability  Is  In 
peril  from  class  conflicts;  there  is  a  recrudescence  of 
savagery  in  "sabotage" ;  victory  of  either  side  after  a 
strike  is  purchased  at  awful  cost  no  matter  who  wins 
or  loses;  men  are  degraded  by  the  hatred  engen- 
dered; civilization  is  Impeded;  health  Is  ruined  and 
offspring  are  born  feeble.  It  Is  this  civil  war  which 
has  induced  men  of  high  character  to  seek  at  least 

5 


Citizens  in  Industry 


palliatives  of  misery  in  acts  of  kindness  and  con- 
ciliation. 

5.  There  are  many  signs  of  a  conscious  recog- 
nition of  the  need  of  harmony  between  employer  and 
employees,  and  on  both  sides.  The  party  in  power 
must  of  course  make  the  advances;  the  party  at 
present  in  power  is  the  capitalist  manager.^  The 
capitalist  managers,  including  the  great  financiers, 
have  a  position  of  advantage  and  power  above  that 
of  ancient  kings.  A  small  group  of  bankers  con- 
trols the  destinies  of  millions;  not  absolutely,  but  in 
great  measure.  They  are  quite  willing  the  world 
should  believe  that  they  are  the  great  men  of  the 
age.      Their    contempt    for   men   of   rank   in   other 

1 A  representative  of  good-natured  employers  has  thus 
expressed  this  growing  recognition  of  a  new  era:  "Consider 
for  a  moment  that  almost  anything  on  four  wheels  was 
selling  from  ten  to  fifteen  years  ago,  that  the  entire  country 
had  suddenly  waked  up  to  the  fact  that  pleasure  makes  for 
efficiency;  that  in  the  old  days  men  responded  to  pain  but 
now  to  pleasure ;  formerly  to  fear,  now  to  hope  and  ambi- 
tion ;  formerly  that  they  had  to  be  driven  and  now  that  they 
have  to  be  enticed.  Summing  it  up,  in  the  old  days  in  gen- 
eral they  advanced  because  of  fear  of  hell-fire,  and  now  they 
advance  in  hope  of  some  day  riding  in  an  automobile." — 
Arthur  E.  Colvin. 

This  seems  to  be  an  echo  and  practical  application  of  the 
social  doctrines  of  Professor  Patten  to  the  effect  that  the 
civilized  world  has  passed  from  an  age  of  economic  deficit 
to  one  of  surplus,  and  hence  from  a  "pain  economy"  to  a 
"pleasure  economy"  which  abolishes  fear  and  asceticism  from 
morals  and  theology  and  calls  for  harmonious,  just  and 
rational  enjoyment  of  increased  production. 

6 


The  Situation  and  Its  Problems 

professions  is  only  too  frequently  manifested  in 
forms  which  beget  deep,  rankling  hatred,  not  only 
among  wage-earners,  but  among  salaried  people. 
The  manager  of  a  great  mill,  factory  or  railway, 
determines  the  physical,  moral  and  spiritual  condi- 
tions under  which  human  beings  must  toil  all  their 
days.  Evidently  such  colossal  power,  inevitable 
under  capitalist  management,  must  be  held  responsi- 
ble for  what  it  does,  or  the  world  is  enslaved.  His- 
tory shows  no  instance  of  irresponsible  power  which 
did  not  destroy  the  character  of  its  possessors, 
whether  in  army,  church,  state  or  business.  A  spe- 
cial claim  is  set  forth  by  the  most  powerful  combina- 
tions of  capital,  precisely  those  which  are  most  un- 
popular, the  most  conspicuous  targets  for  criticism 
and  unfavorable  legislation,  that  they  can  do  most 
to  promote  the  well-being  of  the  employees.  Thus  a 
representative  of  one  of  the  large  corporations  ^ 
said: 

"Such  combinations,  to  my  mind,  would  be  man- 
aged by  able,  fair-minded  men  who,  though  naturally 
engaged  upon  utilizing  the  money  intrusted  to  their 
care  by  the  stockholders,  in  the  most  profitable  man- 
ner, are  at  the  same  time  conscious  of  their  social 
obligations  to  their  employees,  their  customers,  the 
community  in  which  they  operate,  and  to  the  people 
at  large;  and,  in  addition,  possess  the  imagination 
and  foresight  to  realize  that  such  broad-minded  con- 

1  Mr.  Magnus  W.  Alexander  (General  Electric  Company)  : 
The  Annals  of  the  American  Academy  of  Political  and  So- 
cial Science,  July,  1912,  134  ff. 

7 


Citizens  in  Industry 


ception  of  duty  and  obligation  will  in  many  ways 
help,  and  in  no  way  hinder,  the  accomplishment  of 
their  legitimate  business  purpose."  But  can  society 
count  on  the  voluntary  appearance  of  such  managers 
and  on  their  taking  this  view  of  their  duties,  so  long 
as  they  are  legally  in  a  position  where  they  can  do 
as  they  please?  Does  experience  teach  us  that  al- 
most royal  power  tends  to  develop  in  the  adminis- 
trator's respect  for  the  right  of  citizens,  either  con- 
sumers or  workmen,  unless  there  is  some  agent  of 
public  authority  to  enforce  responsibility? 

Mr.  Cyrus  H.  McCormick  certainly  is  a  repre- 
sentative capitalist  manager,  and  of  the  highest 
type.  The  following  statement  may  be  taken  as  illus- 
trating the  nobler  view.^     Mr.  McCormick  said: 

"There  are  sev^eral  companies  that  have  gone 
farther  than  the  harvester  companies  in  making  In- 
vestigations and  installing  work  along  these  better- 
ment lines,  but  we  are  making  a  constant  study  of 
the  question.  We  purpose  making  as  much  progress 
in  it  as  is  consistent  with  certitude.  We  do  not 
want  to  begin  any  work  and  then  find  a  little  later 
that  for  one  reason  or  another  it  must  be  dropped. 
We  do  not  believe  in  publicity  for  it.  In  many  ways 
its  best  purposes  are  defeated  by  wide  advertise- 
ment. The  only  excuse  for  talking  about  work  of 
this  kind  Is  the  hope  that  it  may  assist  some  other 
employers  in  different  parts  of  the  country  to  know 
along  what  lines  good  results  have  been  obtained. 

^  J.  K.  Mumford:    Article,  apparently  an  authentic  report. 
Harper's  Weekly,  July  ii,  1908,  Hi,  22  ff. 

8 


The  Situation  and  Its  Problems 

The  problem  In  formulating  any  system  of  the  sort 
Is  to  find  a  common  platform  from  which  both  em- 
ployer and  employed  can  view  the  thing;  and  then 
again  to  determine  the  point  where  business  judg- 
ment and  the  Instincts  of  humanity  can  meet  -and 
agree  upon  conditions  which  can  satisfy  the  most 
rigid  tests  when  regarded  from  either  standpoint. 
The  elements  to  be  reckoned  with  are  many,  and 
some  of  them  are  difficult  quantities,  but  personally  I 
do  not  believe  the  common  ground  Is  so  hard  to  find 
If  It  Is  sought  In  a  wholehearted,  disinterested  and 
honest  wish  for  conditions  that  shall  be  better  for 
both  parties.  It  Is  doubted  by  many,  but  to  my 
mind  has  been  practically  demonstrated  that  a  busi- 
ness can  be  successful  and  still  not  be  devoid  of 
sentiment.  The  employer  who  wants  the  people  In 
his  business  to  work  under  the  very  best  possible 
conditions  as  to  hours,  wages  and  surroundings,  and 
who  feels  happier  when  he  knows  this  state  of  things 
has  been  obtained,  the  employee  who  takes  satisfac- 
tion In  his  work  because  of  the  Improved  environ- 
ment, and  because  he  knows  that  In  providing  It  the 
employer  has  no  ax  to  grind — these  two  men  can- 
not, In  the  nature  of  things,  remain  at  loggerheads; 
and  In  their  cooperation  there  can  be  no  question  but 
that  the  utmost  advantage  comes  to  both.  There  are 
tests,  however,  that  must  be  applied  at  every  step 
of  the  way,  and  anything  proposed  which  will  not 
stand  these  tests  had  better  be  abandoned  before  It 
Is  begun,  for  It  Is  certain  to  fall  In  the  end.  For 
example,  I  should  say  the  test  of  reasonableness  was 

9 


Citizens  in  Industry 


fundamental.     Extremes  on  either  side  are  death  to 
welfare   undertakings.     The    employer  who   makes 
such  elaborate  outlay  that  employees  and  observers 
generally    are    convinced   there    is    in    his    action    a 
large    element    of   advertising,    or    of    self-gratula- 
tion,    is    likely    to    find    his    work    fruitless.      The 
man  who  cannot  truthfully  tell  himself  that  in  his 
effort  to  better  the  condition  of  his  employees  there 
is  absolutely  no  desire  to  put  them  under  obligation, 
might  as  well  wait  until  he  can,  for  there  is  no  man 
more  sensitive  to  atmosphere  and  impression  than 
the  workingman;  and,  undoubtedly  with  good  rea- 
son,  he   is   more   suspicious  where   his   employer   is 
concerned  than  with   any  other  being.     He  Is  glad 
to  have  facilities  of  all  kinds  and  better  conditions 
to  work  under.     Anybody  would  be,   and  the  sur- 
roundings in  which  people  have  been  compelled  to 
labor  In  many  Instances  have  been  disgraceful.     But 
he  is  bound  to  resent  any  amelioration  If  there  has 
lodged  in  his  mind  the  least  suspicion  that  these  Im- 
provements are  merely  a  means  to   an  end,   a  bait 
put  forth  by  the  employer  to  gain  some  additional 
advantage.     There  have  been  too  many  decades  of 
uncomfortable     experience     for     the     workingman. 
What  wonder  that  it  is  hard  for  him  to  believe  that 
the  man  who  pays  him  his  wages  is  wholehearted  and 
disinterested  in   doing  things  which   under  the   old 
system  would  have  been  counted  manifestly  outside 
of  the  regular  line  of  business?    The  average  work- 
man has  not  yet  reached  the  point  where  he  can  be- 
lieve that  an  employer  is  willing  and  even  glad  to  do 

10 


The  Situation  and  Its  Problems 

these  things  because  the  benefit  from  such  an  under- 
taking is  common  to  them  both.  He  will  not  approve 
of  betterment  in  conditions  nor  accept  it,  if  he 
thinks  that  he  is  expected,  by  reason  of  that  accept- 
ance, to  forego  his  claim  to  fair  wages  and  decent 
hours.  And  nobody  can  blame  him.  It  must,  in 
short,  be  clear  that  the  whole  affair  is  mutual:  that 
the  employer  is  glad  to  appropriate  part  of  his  net 
earnings  for  the  improvement  of  the  conditions  of 
labor;  that  the  employee  gives  better  service  of  heart 
and  hand  because  he  can  naturally  do  so  under  good 
conditions  more  easily  than  under  poor  ones.  And, 
finally,  the  mutuality  of  the  arrangement  should  be 
so  lived  up  to  that  each  party  shall  honestly  believe 
he  has  the  good  end  of  the  deal.  The  manner,  too, 
in  which  this  work  has  been  done  in  many  cases,  has 
made  a  failure  of  it.  There  cannot  be  any  paternal- 
ism in  the  atmosphere,  nor  any  suggestion  of  con- 
descension. The  workman  in  America  is  not  looking 
for  donations.  Nor  can  the  work  be  carried  to  that 
extreme  of  lavishness  where  it  bears  the  mark  of  a 
fad.  It  is  easy  to  push  the  thing  so  far  that  all 
hands  can  see  it  is  really  a  hobby  and  a  vanity  and 
not  a  rational,  advantageous  system;  and,  indeed,  it 
is  rather  difficult  to  know  just  how  far  to  go  in 
spending  money,  where  the  expenditures  may  easily 
come  to  be  a  drain  upon  the  earnings  of  the  business. 
So,  you  see,  when  an  employer,  either  corporate  or 
individual,  undertakes  a  work  of  this  kind,  there  are 
stumbling-blocks  and  pitfalls  almost  v/ithout  num- 
ber, by  which  the  best-meant  efforts  may  be  brought 

II 


Citizens  in  Industry 


to  worse  than  nothing.  The  work  is  so  compara- 
tively new  that  It  has  not  yet  by  any  means  been 
reduced  to  an  exact  science.  Industrial  employers 
are  really  groping  for  knowledge  of  what  to  do  and 
what  not  to  do,  employees  are  In  an  attitude  of  doubt 
and  partial  distrust,  and  the  whole  outcome  of  the 
undertaking  In  many  cases  hangs  upon  a  hair.  By 
and  by  experience  will  have  confirmed  much,  but  of 
the  wisdom  and  justice  of  the  general  purpose  there 
may  be  no  doubt.  In  our  company  we  are  endeavor- 
ing to  consider  It  from  a  business  standpoint  and  not 
from  a  humanitarian  one.  It  Is  difficult  to  dissociate 
the  two.  If  an  employer  followed  his  humane  Im- 
pulses without  the  check  which  business  judgment 
applies,  he  probably  would  soon  be  running  his 
business  plant  at  a  loss,  and  In  a  short  time  would 
have  no  employment  to  offer.  But  from  the  stand- 
point of  pure  business,  It  Is  highly  desirable  that 
conditions  should  be  Improved.  In  the  first  place, 
the  moral  effect  on  the  attitude  and  energy  of  the 
workman  Is  great,  and  thus  indirectly  the  work  Is 
benefited.  But  perhaps  even  more  important  Is  the 
reflex  Influence  upon  the  employer  and  on  the  entire 
business.  There  Is  a  point  where  a  work  of  this  sort 
pays  good  returns  to  the  stockholder  as  well  as  to 
the  employee,  and  aside  from  this  there  Is  a  per- 
sonal satisfaction  to  the  superintendents  of  plants 
and  to  the  managers  of  a  business  when  they  dis- 
cover that  they  are  able,  without  lavish  expendi- 
tures or  unnecessary  waste,  to  see  that  business  Is 
conducted  under  such  advantageous  conditions.     In 

12 


The  Situation  and  Its  Problems 

a  company  of  large  size,  with  diversified  interests 
and  many  employees,  it  is  difficult  to  move  as  rapidly 
as  may  be  desired,  because  a  new  problem  arises  at 
every  step.  A  work  undertaken  at  any  one  plant  of 
a  company  cannot  be  adopted  until  it  is  decided 
whether  it  can  be  installed  at  the  other  plants  so 
that  no  partiality  shall  be  shown.  Another  difficulty 
arises  from  the  employment  of  many  classes,  for 
each  must  be  borne  in  mind  and  recognized  in  pro- 
portion to  its  standing  in  the  business.  The  danger 
in  such  a  case  is  that  the  benefit  will  be  spread  out  so 
thinly  that  no  one  class  or  one  set  of  employees  will 
get  enough  practical  advantage  from  the  work 
done." 

After  Mr.  C.  W.  Price,  who  for  a  time  was  at 
the  head  of  the  welfare  work  at  the  International 
Harvester  Company,  was  rebuked  for  having  sold 
himself  to  a  trust,  he  said:  "You  seem  to  have  over- 
looked entirely  the  possibility  that  the  trusts  may  be 
In  earnest  in  trying  to  do  some  good." 

6.  Public  opinion  has  become  not  only  more  sen- 
sitive, but  more  Intelligent.  Noblesse  oblige.  So- 
ciety has  thus  far  shown  willingness  to  protect  the 
lives  and  property  of  those  who  amass  these  Incred- 
ible fortunes  and  who  enthrone  themselves  in  posi- 
tions which  make  ancient  emperors  seem  paupers 
and  weaklings.  But  the  tacit  assumption  Is  that  this 
grant  of  power  is  accompanied  by  affirmation  of  cor- 
responding responsibility,  and  this  implicit  claim  is 
gradually  taking  distinct  form  in  legislation.  Pub- 
lic opinion  is  slowly  clarifying  Itself  by  demanding 

13 


Citizens  in  Industry 


a  more  adequate  and  scientific  analysis  of  the  con- 
ception of  welfare.  Men  are  refusing  to  give  the 
last  word  to  mere  economic  considerations,  and  they 
are  sharply  asking  for  information  on  the  costs  of 
production  in  health,  race  vigor,  intelligence,  hap- 
piness and  character  of  the  working  people  and  their 
families.  They  are  increasingly  inquisitive  about  the 
real  meaning  of  "national  wealth."  Perhaps,  they 
think  too  much  humanity  is  consumed  to  create  en- 
dowments for  parasitic  families  of  leisure,  endow- 
ments which  must  be  replaced  by  labor  at  intervals 
of  twenty  years  without  any  efforts  or  services  on 
the  part  of  those  who  hold  the  titles  to  property. 
Perhaps  it  would  be  wiser  to  have  a  somewhat 
smaller  material  product,  with  fairer  distribution  and 
better  citizens. 

Dr.  Felix  Adler,  who  is  eminent  as  a  prophet  of 
ethical  idealism,  voices  our  national  protest  against 
the  idolatry  of  production:  ^ 

"But,  however  this  may  be,  certain  It  Is  that  the 
gospel  of  work  in  Its  narrow  and  unjustifiable  sense 
has  become  the  gospel  of  this  country.  What  is 
called  the  "Industrial  spirit"  is  abroad  In  every  so- 
called  civilized  land,  but  nowhere  does  it  display 
itself  with  so  little  check  as  among  us.  Work  for 
the  sake  of  work  is  the  watchword,  and  by  work  is 
meant  Increased  production;  and  this  Is  the  idol  to 
which  we  sacrifice  the  soil,  the  trees,  our  own  health, 

1  Felix  Adler  (New  York  City)  :  Annual  Address  of  the 
Chairman  of  the  National  Child  Labor  Committee.  Annals 
of  the  American  Academy,  Mar.,  1910,  i  ff. 


The  Situation  and  Its  Problems 

and  the  children.  We  are  hard  toward  them  because 
we  are  hardened  against  every  consideration  which 
can  check  increase  of  production;  because  we  are 
under  a  spell — we  are  ruled  by  a  fixed  idea.  And 
this,  to  my  thinking,  is  the  real  reason  why  it  has 
been  so  difficult  to  secure  the  abolition  of  child  labor 
despite  the  earnest  interest  of  so  many  persons  in 
this  movement.  This  is  the  real  reason  why  we  find 
opposition  in  quarters  where  we  should  least  expect 
it;  why  we  not  infrequently  find  that  the  so-called 
best  men  in  the  community,  the  men  who  are  known 
as  the  pillars  of  charity  In  their  neighborhoods,  are 
the  most  obdurate  adversaries  of  our  cause.  Busi- 
ness and  sentiment,  they  think,  must  be  kept  distinct. 
Business  requires  Increase  of  production;  and  since 
'-'  even  a  child's  feeble  strength,  in  connection  with 
modern  machinery,  is  capable  of  adding  to  the  heaps 
of  products,  it  seems  to  them  a  kind  of  law  of  nature 
that  even  the  child  should  be  drafted  into  the  ranks 
of  labor,  no  matter  what  the  ulterior  consequences 
may  be." 

The  public  has  been  at  a  disadvantage  in  its  criti- 
cism. Humane  men  have  been  convicted  of  misrep- 
resentation even  when  they  wished  to  be  fair  and 
reasonable.  Business  has  hitherto  kept  its  secrets, 
and  men  of  affairs  have  regarded  loquacity  as  a  vice 
or  weakness.  In  this  respect  business  resembles  war 
with  Its  deceptive  strategy.  Under  the  spell  of  tra- 
ditional individualism,  the  manager  of  affairs  has 
believed  that  the  public  had  no  right  to  ask  him  about 
his  conduct.    When  manifest  evil  has  resulted  from 

15 


Citizens  in  Industry 


his  methods;  when  children  have  been  robbed  of 
childhood,  workmen  of  health,  and  the  public  has 
been  charged  with  the  burden  of  paying  dividends 
on  watered  stock,  and  the  voice  of  protest  has  arisen, 
the  managers  have  often  replied  that  the  orator,  the 
editor  and  the  preacher  were  Ignorant  of  business 
and  did  not  know  the  facts.  This  was  often  true, 
because  many  of  the  facts  were  purposely  hidden. 

Recently  the  necessity  of  publicity  has  become  so 
evident,  as  in  the  case  of  railways  and  Insurance, 
that  a  much  larger  measure  of  investigation  and 
report  has  been  accepted,  and,  consequently,  criti- 
cism has  more  reliable  material  for  its  work.  It  Is 
ridiculous  to  affirm  that  the  business  management  of 
a  huge  corporation  which  affects  the  health  and  en- 
joyments of  millions  of  people  is  a  mere  private 
affair;  so  ridiculous  that  the  more  sincere  and  saga- 
cious magnates  are  ready  frankly  to  admit  the  ab- 
surdity. But  they  have  a  right  to  demand  In  the 
name  of  the  public  welfare  as  well  as  their  own 
interest  that  the  public  inspection  and  control  shall 
be  free  from  mean  partisanship  and  be  intelligent, 
competent  and  fair.  The  utmost  publicity  Is  the  best 
protection  for  all  groups  of  interests  involved. 

Public  opinion  ultimately  shapes  a  program  for 
the  realization  of  Its  higher  demands.  In  Germany, 
where  a  "social  policy"  has  been  in  process  of  devel- 
opment for  ages,  even  from  medieval  feudality, 
there  is  a  scientific  literature  on  the  subject.  In 
America  we  are  only  at  the  beginning  of  a  conscious 
development  of  such  a  policy,  part  of  which  includes 

i6 


The  Situation  and  Its  Problems 

the   voluntary   activities   of   enlightened   employers, 
which  are  the  subject  of  the  present  discussion. 

WELFARE   WORK 

7.  "Welfare  work"  is  a  form  of  voluntary  activ- 
ity of  employers  for  the  betterment  of  conditions  of 
employees,  by  methods  which  are  not  yet  incorpo- 
rated in  legal  institutions.  This  definition  would  ex- 
clude measures  which  are  essential  to  the  existence 
and  conduct  of  the  business  itself;  as,  for  example, 
where  a  corporation,  having  erected  a  mill  far  from 
towns,  is  compelled  to  build  boarding  houses  and 
dwellings  as  a  condition  of  securing  laborers.  So  far 
as  the  employers  try  to  make  these  dwellings  com- 
fortable and  attractive  beyond  mere  necessity,  the 
element  of  "welfare  work"  may  be  recognized. 

In  a  country  where  social  insurance  and  protective 
measures  are  legally  obligatory,  the  accident  and 
sickness  insurance  and  old-age  pensions  are  not  de- 
pendent on  the  goodwill  of  employers,  but  in  the 
United  States,  where  law  has  not  yet  developed  far 
in  this  direction,  there  is  large  room  for  voluntary 
action. 

A  German  writer  thus  gives  these  directions  as  to 
fixing  the  meaning  of  the  term :  ^ 

a.  Exclude  all  those  features  in  which  the  interest 
of  the  employer  is  as  great  as,  or  greater  than,  that 
of  employees :   for  example,   a   compulsory  savings 

1  Dr.  Heinz  Patthoff  (Dusseldorf)  :  Soziale  Praxis,  Feb. 
I,  1912,  xxi,  551-553. 

17 


Citizens  in  Industry 


fund  which  serves  the  employer  as  a  reserve  fund 
or  running  capital;  or  a  building  association,  if  the 
building  of  houses  in  the  neighborhood  of  the  factory 
is  necessary  for  the  business;  or  a  canteen,  a  con- 
sumers' league,  etc.,  by  the  installation  of  which  the 
employer  gains. 

b.  Exclude  all  those  features  for  which  the  em- 
ployer himself  does  not  actually  make  expenditures, 
those  which  the  employees  themselves  conduct  inde- 
pendently for  bettering  their  condition — such  as  a 
savings  fund  which  pays  the  ordinary  interest;  sick- 
ness, death,  and  pension  funds  to  which  the  employer 
does  not  contribute;  building  of  houses,  the  rent  of 
which  pays  the  interest  in  full. 

c.  A  savings  fund  used  in  the  business,  even 
though  it  pays  larger  interest  than  ordinary,  is  not 
to  be  considered  a  welfare  feature,  because  the  em- 
ployer reaps  larger  advantage  from  it  than  its  cost 
to  him;  the  interest  is  not  at  the  employer's  expense 
but  comes  from  the  profits  of  the  business;  similarly, 
pension  funds  and  the  like. 

d.  If  through  the  working  agreement  the  em- 
ployee is  compelled  to  contribute  to  welfare  features, 
these  features  must  comply  at  least  with  the  condi- 
tions which  are  prescribed  by  law  or  custom  for 
business  enterprises  of  like  kind. 

e.  The  employee  should  have  a  share  in  the 
administration  of  welfare  features. 

The  boundaries  between  voluntary  arrangements 
of  employers  and  compulsory  methods  enforced  by 
law  are  constantly  shifting.    What  was  philanthropy 

i8 


The  Situation  and  Its  Problems 

yesterday  is  statute  to-day;  yet  philanthropy  has  for 
centuries  pioneered  the  way  for  action  of  the  State. 

8.  The  purpose  of  welfare  work  is  to  build  up 
a  community  of  Interest  in  work  and  life  in  such  a 
way  as  to  unite  workmen  and  managers  in  an  effort 
to  prevent  misery,  and  to  make  the  work  itself  a 
means  of  inner  satisfaction,  and  the  relation  one  of 
common  striving  for  the  same  end,  of  mutual  help- 
fulness, and  of  material  and  ideal  progress.^  The 
purpose  must,  therefore,  be  social  and  not  merely 
private  and  selfish — civil  and  not  merely  personal. 

9.  Attitude  and  Motives  of  Employers. — So  far 
as  motives  are  concerned,  we  are  dealing  with  in- 
visible and  unverifiable  factors.  It  would  be  very 
interesting  to  be  able  to  prepare  a  mathematical 
formula  which  would  represent  accurately  the  com- 
position of  the  Incentives  which  led  to  the  introduc- 
tion of  clean  towels,  baths,  restaurants  and  rest- 
rooms,  as  philanthropy  and  religion  50  per  cent.; 
hope  of  larger  product,  25  per  cent.;  political  aspira- 
tions of  the  patron,  10  per  cent.;  miscellaneous,  15 
per  cent.  Such  estimates  may  be  amusing,  but  they 
are  scientifically  absurd. 

Since  we  must  abandon  all  hope  of  measuring  the 
force  of  the  various  elements  of  inducement,  we 
shall  not  go  far  wrong  if  we  give  generous  credit 
for  the  subjective  feelings  and  spend  our  time  and 
strength  chiefly  on  studying  the  objective  facts  and 
results  of  the  plans  and  devices. 

^  Aufgaben,  und  Organisation  der  Fabrikwohlfahrtspflege 
in  der  Gegenwart  (1910),  p.  i. 

19 


Citizens  in  Industry 


Under  what  conditions  is  "welfare  work"  advis- 
able from  the  standpoint  of  pecuniary  advantage  to 
the  employer  and,  therefore,  most  likely  to  be 
extended?  The  answer  is:  In  any  case  where 
the  increased  efficiency  and  product  cover,  or 
more  than  cover,  the  cost.  It  is  sometimes  diffi- 
cult to  measure  this  cost  and  the  value  of  the  in- 
creased efficiency;  but  the  principle  is  clear. 

It  is  possible  that  welfare  work  may  pay  as  an 
element  in  advertising;  it  may  attract  customers  and 
gain  reputation  for  the  brand  of  goods  which  seeks 
a  market. 

The  firm  which  has  a  monopoly  of  the  business, 
or  a  control  of  patents,  may  easily  do  for  its  em- 
ployees what  a  competitive  firm,  manufacturing  sta- 
ples, may  be  unable  to  do.  In  case  of  monopoly, 
the  public,  the  consumers,  pay  for  the  comforts  and 
advantages  in  higher  prices. 

A  related  situation  is  that  where  a  firm  sells  for 
fifty  cents  a  package  which  costs  it  ten  cents  to  make. 
Here  again  the  consumers  pay  for  comforts,  while 
the  firm  gets  fame  for  its  liberality.^  When  a  cereal 
food  product  is  sold  at  a  price  which  makes  a  barrel 
of  flour  cost  the  consumer  $25  to  $50,  it  is  clear  that 
the  manufacturer  has  a  wide  margin  for  presents  to 
employees. 

"No  matter  how  much  the  manager  of  a  business 
may  wish  to  run  it  for  other  things  exclusively,  or  for 
dollars  exclusively,  he  will  find  that  one  is  not  at- 

^  Duncan:  The  Principles  of  Industrial  Management, 
loi   ff. 

ZQ 


The  Situation  and  Its  Problems 

tained  without  the  other.  He  Is  forced  to  run  the 
business  for  the  dollar  If  he  wishes  to  make  an  Ideal 
organization  for  each  member  of  the  human  family 
included  In  It.  And  vice  versa,  he  must  work  toward 
the  best  conditions  for  all  the  workers  if  he  wishes 
to  protect  the  capital  invested  by  making  a  stable 
and  fairly  long-lived  organization."  ^ 

We  must  notice  the  occasional  capitalistic  opposi- 
tion to  welfare  work  and  its  grounds.  Mr.  C.  W. 
Post,  once  president  of  the  National  Association  of 
Manufacturers,  voiced  the  feeling  of  managers  of  a 
certain  type:  "I  am  not  a  warm  advocate  of  a  lot 
of  foolish,  misapplied,  maudlin  sympathy  that  has 
paraded  under  the  name  of  'welfare  work.'  I  don't 
provide  any  marble  bathtubs,  lecture-rooms,  stereop- 
ticon  pictures,  free  libraries  and  reading-rooms,  or 
free  lectures.  .   .   . 

"Men  who  understand  workmen  at  all  realize  that 
first  and  foremost  they  do  not  want  to  be  subjected 
to  a  lot  of  gifts  and  charities  that  would  place  them 
under  lasting  servile  obligation  to  the  donor,  their 
employer.  Their  subconscious  manhood  rises  in 
revolt,  and  they  hate  to  meet  the  boss  on  the  street. 
They  are  embarrassed  and  don't  feel  right.  The 
American  workman  wants  an  honest,  first-class  price 
for  his  labor,  and  then  he  wants  to  be  let  alone  to 
follow  his  own  ideas  as  to  his  ways  of  life  and  the 
use  of  his  money.  If  he  is  badly  In  need  of  a  book, 
there  are  ways  that  he  can  get  one  without  being 
under  obligation  to  the  boss  for  It.     If  he  wants  a 

^  Hartness :    Human  Factor  in  Works'  Management,  p.  68. 

21 


Citizens  in  Industry 


bath,  the  same  thing  is  true.  Pay  men  the  highest 
standard  of  wages  and  they  will  pretty  well  take 
care  of  themselves.  The  welfare  work  that  I  be- 
lieve in  is  that  which  makes  it  possible  for  the 
man  to  help  himself,  but  it  does  not  include  the 
holding  of  a  milk  bottle  to  his  lips  after  he  is 
weaned."  ^ 

On  the  other  hand,  a  more  critical  and  sober 
attitude  is  taken  by  many  employers  who  see  the 
advantages  of  welfare  work  in  better  personal 
relations.  For  example,  a  certain  firm  treated  its 
employees  according  to  the  best  standards  and  won 
their  confidence  by  courtesy  and  justice.  At  a  critical 
time  of  depression,  when  goods  could  not  be  sold 
and  it  required  credit  to  carry  the  unsold  stock,  the 
employees  sent  a  committee  to  the  managers  to  offer 
all  their  savings  for  the  use  of  the  company,  if 
needed.- 

One  strong  firm  explained  its  reasons,  and  stated 
its  creed  as  a  belief  in  "sympathetic,  cooperative  fel- 
lowship of  employer  with  employee,  a  fellowship  of 
purpose  and  interest,  established  not  upon  the  plane 
of  paternalism,  but  upon  the  plane  of  recognized  and 
honored  rights."  ^     With  this  in  view  one  man  is 

^  The  Survey,  Aug.  i6,  1913,  p.  632. 

2  W.  H.  Tolman :  "Model  Industries,''  in  Peters'  Labor 
and  Capital,  312  ff. 

^  F.  W.  Ramsey  (Cleveland  Foundry  Company)  :  Article, 
"The  Employers'  Obligation  to  Safeguard  Machinery,  and 
the  Compensation  Plan."  National  Civic  Federation,  Tenth 
Annual  Meeting,  1909,  p.  59. 

22 


The  Situation  and  Its  Problems 

hired  to  devote  most  of  his  time  to  devising  ways  of 
diminishing  hazards. 

Since  generous  examples  are  contagious,  it  may 
fairly  be  said  that  it  is  the  duty  of  corporations  to 
give  publicity  to  their  efforts  to  improve  conditions. 
Dr.  Joseph  A.  Holmes,  Director  of  the  Bureau  of 
Mines,  said  at  the  first  Cooperative  Safety  Congress  : 

"The  most  inspiring  thing  in  this  whole  situation 
is  the  spirit  of  cooperation,  and  I  am  delighted  to 
report  that  in  the  mining  situation  to-day  I  am  finding 
the  heartiest  cooperation  between  the  miners  and  the 
mine-owners,  and  I  hope  we  will  also  have  the  co- 
operation of  the  general  public  in  being  fair  to  both 
the  miner  and  the  mine-owner.  .  .  .  We  all  realize 
how  important  is  public  opinion,  and,  in  my  judg- 
ment, one  of  the  greatest  mistakes  the  large  cor- 
porations are  m^aking  to-day  is  that  they  are  not 
coming  forward  and  letting  the  public  know  the  good 
work  they  are  doing." 

In  the  numerous  methods  which  are  to  be  dis- 
cussed, we  shall  be  able  to  discern  indirectly  the 
reasons  which  explain  the  creation  of  these  kinds  of 
schemes  for  the  improvement  of  the  lot  of  workers 
in  shop  and  home. 

10.  Attitude  of  Employees. — Not  without  some 
reason  many  employees  have  objected  to  all  forms 
of  service  which  depend  on  the  voluntary  conces- 
sions of  the  employers.  The  modern  workman, 
happily  for  civilization,  is  exceedingly  sensitive  to 
anything  which  suggests  charity.  Unlike  the  medie- 
val serf  or  mendicant,  the  urban  operative  of  our  day 

23 


Citizens  in  Industry 


feels  degraded  and  insulted  by  the  offer  of  alms  in 
any  form.  He  sometimes  discovers  an  offense  even 
where  none  is  intended.  The  operative  who  has 
identified  himself  with  the  trade  union  and  believes 
this  to  be  the  chief  bulwark  of  his  interests  is  in- 
stinctively antagonistic  to  any  scheme  which  tends  to 
separate  him  from  his  fellows  and  to  identify  his 
interests  too  closely  with  those  of  the  employers. 
He  does  not  wish  to  accept  favors  which  interfere 
with  his  freedom  to  move  to  better  conditions,  or  to 
strike  when  his  comrades  call. 

The  enlightened  operative  desires,  so  far  as  pos- 
sible, to  have  his  claims  rest  not  on  the  caprice  or 
benevolence  of  his  master,  but  on  the  solid  and  per- 
manent basis  of  legal  contract  which  can  be  en- 
forced in  courts.  If  the  favor  granted  him  cannot 
be  thus  assured,  it  is  not  attractive  to  him.  Occa- 
sionally the  operatives  believe  that  gifts  and  favors 
are  thrown  to  them  to  divert  attention  from  crying 
wrongs,  to  make  them  silent  under  intolerable 
abuses,  and  to  allay  public  criticism.  There  have 
been  instances  where  the  corporation  furnished 
houses  to  workmen  at  low  rents  but  held  over  them 
threats  of  eviction  at  the  least  sign  of  resistance  to 
their  demands. 

In  some  trade-union  criticisms,  the  note  of  dis- 
trust is  marked  and  little  credit  is  given  for  altruism. 
In  an  analysis  of  the  schemes  of  betterment  chroni- 
cled in  a  government  bulletin  they  were  all  explained 
by  pecuniary  advantage.  Some  of  the  plans  save 
time  and  material,  as  when  improved  lighting  en- 

24 


The  Situation  and  Its  Problems 

ables  the  workmen  to  speed  the  process  and  secure 
a  better  product.  Cleanliness  of  the  place  is  neces- 
sary where  food  products  are  handled  and  the  con- 
suming public  is  easily  disgusted.  It  pays  to  con- 
serve the  health,  safety  and  lives  of  workers,  since 
change  requires  expense  and  effort  to  select  and  in- 
struct new  men,  while  injuries  cause  expense  in 
damage  suits  and  expenditures  for  compensation. 
Regard  for  comfort  and  security  develops  a  sense  of 
loyalty  to  the  establishment.  "Welfare  work  is  a 
sop  to  labor."  A  corporation  introduces  an  insur- 
ance plan  and  cuts  wages  to  meet  the  cost.  There 
is  no  welfare  work  where  men  are  organized;  be- 
cause the  supreme  purpose  is  to  keep  out  the  unions. 
Business  men  make  a  pretense  of  offering  some- 
thing for  nothing,  and  that  is  not  business.  Real 
welfare  work  is  fair  wages  and  shorter  hours  of 
labor.  If  what  is  called  welfare  work  were  sup- 
plied by  the  unions,  they  would  get  the  credit  and 
become  stronger. 

Probably  the  attitude  of  Mr.  Gompers,  President 
of  the  American  Federation  of  Labor,  may  be  taken 
as  typical.^  After  commenting  on  some  of  the  meth- 
ods of  welfare  work,  and  showing  that  none  of 
these  goes  beyond  the  requirements  of  enlightened 
self-interest  and  common  decency,  as  supply  of  pure 
water,  baths,  clean  towels,  good  lighting,  etc.,  he 
concludes:  "It  should  be  clearly  understood  that  an 
employer  who  employs  numbers  of  workers  in  his 
establishments  places   them  under  an  organization 

^American  Federationist,  Dec,  1913,  p.  1041. 

25 


citizens  in  Industry 


where  they  uidlvidually  have  no  control  over  envir- 
onment, and  are  unable  to  furnish  for  themselves 
even  the  most  necessary  things  such  as  water,  toilet 
provisions,  and  things  of  like  nature.  Any  person 
who  is  in  any  degree  responsible  for  the  well-being 
of  human  beings,  cannot  with  good  conscience  dis- 
regard the  obligation.  If  he  has  intelligent  imagina- 
tion and  foresight  he  will  refuse  to  poison  the  bodies 
and  lungs  of  the  workers,  or  to  permit  them  to 
render  their  product  unfit  for  consumption,  to  ruin 
their  eyesight  or  to  mutilate  their  bodies.  He  will 
do  these  things  to  satisfy  his  own  sense  of  decency 
and  justice,  and  anything  less  would  do  violence  to 
his  conscience  and  cause  him  discomfort.  Such 
deeds  are  not  favors,  but  only  a  decent  respect  for 
humanity.  The  spurious  kind  of  welfare  work,  in- 
tended only  to  rob  the  workers  of  independence  of 
action  and  of  just  compensation,  has  met  with  de- 
served discredit  and  disrepute.  Justice,  not  charity, 
is  the  right  of  all  the  workers.  Let  welfare  work 
become  what  it  should  be — conscience  work." 

Another  union  representative  said:  "Welfare 
work  chloroforms  the  worker  and  gets  the  better 
of  him.  The  unionists  want  to  help  themselves. 
They  do  not  want  to  be  the  objects  of  patronage. 
It  is  a  noticeable  thing  that  welfare  work  stops  when 
shops  become  unionized.  Shops  which  give  turkeys 
at  Thanksgiving  stop  giving  turkeys  after  the  men 
form  unions,  but  the  men  can  buy  turkeys  several 
times  a  year,  if  they  care  to  do  so,  with  the  increase 
in  wages.     This  seems  to  be  evidence  that  welfare 

26 


The  Situation  and  Its  Problems 

work  is  used  to  keep  the  men  from  organizing." — 
Mr.  Frey. 

In  at  least  partial  answer  to  the  objections  of 
wage-earners  It  has  been  urged:  There  is  no  great 
danger  to  protective  legislation  from  welfare  work, 
because  the  press,  the  extension  of  the  suffrage  to  all 
adults,  and  the  secret  ballot,  all  backed  by  a  growing 
public  sentiment,  furnish  a  guarantee  that  social  leg- 
islation will  be  steadily  developed  to  meet  all  the 
dangers  of  industry.  Discussions  and  investigations 
in  legislatures  keep  criticism  alive. 

The  "patronage"  factor  tends  to  disappear  with 
the  education  of  the  working  people  and  of  their 
employers.  The  welfare  work  brings  an  advan- 
tage to  the  manager  only  when  it  Is  acceptable  to  the 
employees,  for  only  then  is  it  an  inducement. 

The  assertion  of  legal  rights  is  not  likely  to  be 
weakened  because  the  state  organization  of  inspec- 
tion, independent  of  the  employers,  becomes  more 
and  more  effective.  The  abolition  of  "truck  laws" 
has  removed  one  ground  of  complaint  and  source 
of  abuse. 

The  fact  that  employers  profit  by  their  expendi- 
tures on  beneficent  schemes  Is  quite  consistent  with  an 
equal  or  even  greater  gain  to  the  workmen.  It  does 
not  seem  to  be  generally  true  that  the  rate  of  wages 
is  lower  with  firms  which  furnish  extra  advantages; 
generally  higher  wages  go  with  each  additional  com- 
fort and  privilege. 

As  has  been  said,  it  is  generally  agreed  to  accept 
the  principle  that  all  "paternalism,"   feudal,  patri- 

27 


Citizens  in  Industry 


archal,  patronizing  elements  must  be  excluded  from 
the  relations  between  employers  and  employees. 
The  reasons  for  this  are  manifold.  One  of  the 
essential  achievements  of  the  industrial  revolution 
has  been  to  take  the  workman  out  of  a  condition 
determined  by  status  and  secure  to  him  all  the  dig- 
nity and  security  of  freedom  of  contract.  In  this 
relation  the  employer  and  employee  are  supposed 
to  be  on  a  level  of  legal  equality.  This  advanced 
position  was  won  at  such  cost  that  intelligent  work- 
ingmen  will  never  surrender  it,  and  they  are  exceed- 
ingly and  justly  sensitive  to  any  indications  of  en- 
croachment. The  workman  has  won  and  intends  to 
keep  his  right  to  his  own  career  and  his  own  person- 
ality. He  wishes  and  wills  to  enjoy  himself  in  his 
own  way,  so  long  as  he  does  not  invade  the  similar 
rights  of  his  fellow-citizens.  He  resents  any  kind 
of  direction  of  his  appetites,  his  tastes,  his  enjoy- 
ments, his  reading,  his  worship,  his  creed,  his  exer- 
cise of  political  rights. 

Legally  and  politically  he  is  the  equal  of  his  em- 
ployer. When  he  makes  an  oral  or  written  contract 
to  labor,  his  obligations  are  defined  and  limited  by 
that  contract,  or  what  is  implied  in  it,  by  law  and 
custom  understood  of  all  parties. 

The  aspiration  of  the  workman  to  be  a  true  cause, 
is  a  real  factor  in  the  direction  of  forces  which  affect 
his  interests.  Mr.  John  Williams,  President  of  the 
Amalgamated  Association  of  Iron,  Steel  and  Tin 
Workers,  Pittsburgh,  voiced  this  ideal  :^ 

^Annals  of  the  American  Academy,  July,  1912,  3  ff. 

28 


The  Situation  and  Its  Problems 

"The  workingman  loses  his  individuality  as  soon 
as  he  enters  one  of  our  modern  industrial  plants.  He 
becomes  but  an  atom  in  the  great  aggregate  of  this 
industrial  system,  and  his  only  hope  of  regaining  his 
social  and  economic  individuality  is  by  uniting  with 
his  fellow-workmen  in  a  movement  through  which 
he  will  be  able  to  secure  a  joint  bargain  with  his 
employer  for  the  labor  he  has  to  sell."  In  other 
words,  he  asks  "justice"  and  nothing  more;  certainly 
not  gifts  of  charity.     But  again  what  is  "justice"? 

There  are  managers  who  insist,  in  their  reaction 
against  welfare  work,  that  they  buy  labor  just  as 
they  buy  iron  or  wagons ;  that  their  moral  obligations 
are  fully  met  when  they  pay  market  or  contracted 
rate  of  wages.  "Justice"  has  an  insistent  way  of 
pushing  to  the  core  of  problems.  Is  the  analogy 
between  "labor"  and  iron  or  wheat  exact? 

"Labor"  is  an  abstraction  and  has  no  concrete 
reality;  what  we  mean  are  laborers,  and  laborers 
are  human  beings  with  nerves  and  capacity  for  suf- 
fering which  iron  ingots  have  not.  Even  in  the  case 
of  horses  or  mules,  a  manager  of  business  cannot 
claim  to  treat  them  as  iron  or  wheat;  for  they  have 
nerves. 

The  employer  to  be  "just"  must  take  into  account 
the  rights  of  the  community,  the  nation,  the  race; 
he  has  no  right  to  exploit  the  vitality  of  the  people 
for  his  personal  gain.  "Justice"  is  no  longer  defined 
from  a  jnerely  individualistic  point  of  view;  it  is  a 
social  product,  is  social  wealth,  and  is  socially  defined 
and  guarded. 

.   29 


Citizens  in  Industry 


The  treatment  of  employees  is  regulated  by  law, 
which  is  the  rule  of  the  will  of  society  expressed  in 
legal  and  authoritative  form.  The  requirements  of 
"justice"  are  no  longer  left  to  private  and  irrespon- 
sible persons  to  fix  by  caprice;  they  are  discussed  in 
public,  formulated  in  the  light  of  conflicting  criti- 
cism, and  finally  set  down  for  the  authoritative  regu- 
lation of  relations  between  men.  It  is  not  safe  to 
leave  such  matters  of  national  interest  to  private 
parties;  and  they  are  not  so  left.  The  laws  relating 
to  child  labor,  women  workers,  factory  inspection, 
comfort,  health  and  safety,  liability  and  compensa- 
tion for  injuries,  are  concrete  examples  of  public 
definition  of  the  duties  of  employers  to  employees. 

These  laws  are  based  on  justice,  not  charity,  and 
they  contain  a  body  of  regulations  which  is  con- 
stantly growing  and  widening  and  becoming  more 
precise  and  exact.  This  is  legal  justice;  and  it  has 
now  entered  into  the  shop,  the  mill,  the  mine.  All 
voluntary  generosity  must  start  with  this  legal 
ground  and  take  it  for  granted. 

II.  Typical  Comprehensive  Plans. — Before  we 
take  up  particular  phases  of  betterment  devices  for 
description  and  criticism,  we  may  select  a  few  exam- 
ples to  exhibit  the  system  in  which  particulars  find 
their  places. 

A  type  of  the  better  German  welfare  department, 
that  of  D.  Peters  and  Company,  is  selected.^  This 
company  has  a  special  department  for  welfare 
work.     There  is  a  council  of  "elders"  of  sick  mem- 

^  Shadwell :     Industrial  Efficiency,  ii,  175  ff. 

30 


The  Situation  and  Its  Problems 

bers;  a  member  of  the  corporation  is  chairman, 
without  vote;  four  members  are  named  by  the  firm 
and  four  are  selected  from  the  general  assembly. 
The  duty  of  the  council  Is  to  examine  the  accounts; 
to  look  after  cases  of  need  and  misfortune;  to  super- 
vise the  conduct  of  the  younger  work-people;  to 
encourage  them  to  Improve  their  leisure  time;  to 
combat  rough  behavior  and  drunkenness;  to  secure 
observance  of  factory  rules,  and  to  prevent  waste. 
As  representatives  of  employer  and  employees,  they 
make  regulations,  fix  piece-work  price  lists,  and 
hours  of  work,  and  adopt  measures  to  avert  danger 
and  Increase  efficiency.  The  sick  benefit  club  is  the 
legal  organ  of  sickness  Insurance.  All  employees  are 
required  to  belong  to  the  savings  bank  fund.  Mar- 
ried men  deposit  5  per  cent,  of  wages  and  unmarried 
men  10  per  cent.  Interest  at  the  rate  of  6  per  cent. 
Is  paid  on  sums  less  than  $500;  after  that  the  depos- 
itor disposes  of  his  savings  as  he  pleases.  There  Is 
also  a  voluntary  savings  bank,  which  pays  5  per 
cent.  Interest.  There  Is  a  relief  fund  for  the  assist- 
ance of  persons  not  protected  by  the  sickness  insur- 
ance law.  Pensions  are  provided  for  by  law.  The 
workmen  are  helped  to  build  homes. 

There  Is  a  large  building  for  the  use  and  enjoy- 
ment of  the  people.  Bathing  facilities  are  provided, 
and  the  fees  go  to  the  relief  fund.  A  steam  laundry 
charges  $1.25  a  quarter  for  each  family.  Wages 
are  relatively  high,  and  hours  of  work  have  been 
gradually  reduced  by  the  firm. 

A  Typical  American  Corporation. — The  MUwau- 
31 


Citizens  in  Industry 


kee  Electric  Railway  and  Light  Company  has  devel- 
oped a  rather  complete  system,  a  description  of 
which  gives  a  tolerably  fair  example  of  the  type. 
The  welfare  department  has  for  its  object  "to  pro- 
mote the  well-being,  the  happiness  and  the  content- 
ment of  its  employees."  Membership  in  the  Em- 
ployees' Mutual  Benefit  Association  Is  v^oluntary. 
It  provides  for  medical  care,  sick  benefits  being 
granted  in  case  of  illness  of  more  than  one  week. 
Representatives  of  the  Company  visit  homes  when 
there  is  sickness  or  other  misfortune,  and  employees 
call  at  the  office  of  the  welfare  department  for  ad- 
vice. Sick  children  of  the  workers  are  treated  med- 
ically at  reduced  rates.  The  educational  purpose  of 
the  department  is  made  effective  by  encouraging  the 
use  of  the  public  library,  a  branch  being  established 
in  the  public  service  building,  and  the  reading-room 
is  furnished  with  technical  magazines.  The  educa- 
tional aim  is  defined  as  preparing  "the  individual  to 
reach  the  highest  state  of  efficiency  possible  In  carry- 
ing out  his  life-work."  The  educational  value  of 
play  and  recreation  is  recognized  In  the  maintenance 
of  a  band,  an  orchestra,  a  men's  chorus,  a  dramatic 
club,  dances,  entertainments,  poolrooms  and  bowling 
alleys. 

The  economic  Interests  of  the  workers  are  pro- 
moted by  a  pension  fund  which  provides  an  income 
for  those  who  reach  the  age  of  sixty  and  have  been 
in  the  employ  of  the  Company  for  fifteen  consecutive 
years.  Employees  who  find  It  necessary  to  borrow 
arc  not  driven  to  the  pawnbrokers.     In  the  year  end- 

32 


The  Situation  and  Its  Problems 

ing  March  ist,  1913,  344  loans  were  made  ranging 
from  $10  to  $100  each;  a  total  of  $13,740.50. 

The  Importance  of  suitable  homes  is  recognized 
by  assisting  families  living  in  unwholesome  houses 
to  move  into  better  quarters  in  the  less  congested 
sections  of  the  city. 

Even  in  such  a  delicate  matter  as  marital  troubles, 
the  agent  of  the  Company,  a  person  of  tact  and  fine 
feeling,  has  been  able  to  secure  reconciliation  and 
readjustment  of  the  relations  of  married  people, 
thus  saving  them  and  their  children  from  disgrace 
and  misery.  Manifestly  such  work  as  this  cannot 
be  bought  with  money.  A  magazine  is  published 
whose  purpose  is  declared  to  be  "to  strengthen  the 
bond  of  fellowship,  the  spirit  of  mutuality  between 
man  and  man." 

The  safety  work  of  the  Company  includes:  safe- 
guarding machinery,  making  various  kinds  of  work 
less  hazardous,  installing  appliances  that  will  protect 
the  public  as  well  as  the  employees,  posting  of  no- 
tices in  conspicuous  places,  pointing  out  the  dangers 
of  the  street  and  making  a  direct  appeal  to  the  em- 
ployees to  cooperate  and  make  suggestions  as  to 
methods  of  preventing  accidents.  There  is  a  cen- 
tral safety  committee,  composed  of  heads  of  depart- 
ments, which  meets  every  week.  Subcommittees  are 
composed  of  superintendents  and  foremen,  and  meet 
every  two  weeks,  making  recommendations  to  the 
central  committee.  There  is  cooperation  with  the 
Wisconsin  Safety  League,  which  educates  school 
children  in  methods  of  safety.     Cards  are  issued  to 

33 


Citizens  in  Industry 


each  employee  with  suggestions  for  the  prevention  of 
accidents. 


OUTLINE     OF     ORGAN'IZATION     AND    ACTIVITIES     ALONG     IN- 
DUSTRIAL   BETTERMENT   LINES SOUTH    WORKS  OF 

THE    ILLINOIS    STEEL    COMPANY,    SOUTH 
CHICAGO.    ILLINOIS 

South  Works  covers  an  area  of  approximately  350 
acres,  on  which  are  located  the  ore-receiving  docks 
and  massive  bridges  and  cranes  for  handling  raw 
materials ;  1 1  blast  furnaces  for  the  smelting  of  Iron ; 
26  open-hearth  furnaces,  and  3  bessemer  vessels  for 
refining  the  iron  into  steel;  2  rail  mills;  2  blooming 
mills;  2  structural  shape  mills;  i  slabbing,  and  2 
plate  mills;  an  electric  furnace,  and  complete  shop 
system,  including  machine,  bridge,  pipe,  carpenter, 
pattern,  blacksmith,  paint,  and  locomotive  repair 
shops,  foundries,  etc. 

Eighty-five  hundred  people  are  normally  em- 
ployed, the  bulk  of  whom  are  foreign  laborers.  In 
all  thirty-two  nationalities  are  represented,  and  many 
of  these  aliens  are  illiterate.  The  proper  treatment 
of  so  large  and  so  varied  a  force  is  a  matter  of 
intense  moment  to  the  oflficials  in  charge.  To  handle 
chis  problem  there  was  created  some  eight  years 
ago  a  department  of  labor  and  safety,  wherein  are 
centered  the  employment,  fire,  police,  accident  pre- 
vention, personal  injury  settlement,  visiting  nurse, 
pension,  and  all  other  similar  activities  of  the  whole 
plant.     This  department  is  unique  in  its  operation, 

34 


The  Situation  and  Its  Problems 

and  has  been  a  very  active  force  in  carrying  out  the 
policy  of  the  general  superintendent,  viz.,  that  ever-j 
man  shall  he  guaranteed  a  square  deal  in  all  his  rela- 
tions with  the  Company.  The  department  of  labor 
is  supreme  in  its  decisions  regarding  all  questions  of 
eligibility  (other  than  efficiency)  of  all  applicants 
for  employment,  and  in  like  manner,  reviews  all 
cases  of  dismissal  from  the  service,  which  are  recom- 
mended by  the  various  department  heads,  and  sees 
that  they  are  not  prejudicial  to  the  expressed  policy 
of  the  General  Superintendent.  When  necessary, 
reinstatement  is  made,  and  all  questions  of  infraction 
of  plant  regulations  are  passed  upon  directly  by  the 
Supervisor  of  Labor  and  Safety. 

The  best  results  have  been  obtained  through  edu- 
cational measures,  which  are  accomplished  mainly 
through  committees  of  workmen  themselves.  In 
each  department  there  is  maintained  a  committee  of 
workmen  who  have  general  charge  of  the  safety 
work  in  their  own  department. 

At  this  meeting  a  discussion  of  all  accidents  oc- 
curring in  the  preceding  month  is  read,  and  the  com- 
mitteemen classify  the  accident  according  to  the  fol- 
lowing chart,  a  majority  vote  deciding: 

I.      Trade  Risks,  Incidental  and  Non-preventable 
II.     Negligence  of  Company 

I.  Failure  to  use  safety  devices  provided  by 
foremen  or  others 

3S 


Citizens  in  Industry 


2.  Failure  to  use  proper  tools  or  appliances 

provided 

3.  Violation  of  rules  by  foremen  or  others 

4.  Improper  act,  or  selection  of  improper 

method  of  doing  work  by  foremen  or 
others 

5.  Failure  to  instruct  men  as  to  method  of 

doing    work,    and    hazards    incident 
thereto  by  foremen  or  others 

6.  Failure  to  provide  safety  devices 

7.  Failure  to  provide  proper  tools,  appli- 

ances or  place  to  work 

III.     Negligence  of  JVorkmen 
A — Injured  Man 

1.  Failed  to  use  safety  devices  provided 

2.  Failed  to  use  proper  tools  or  appliances 

provided 

3.  Violation  of  rules 

4.  Improper  act,  or  selection  of  improper 

method    of    doing    work    (by    work- 
men) 

B — Other  Workmen 

1.  Failed  to  use  safety  devices  provided 

2.  Failed  to  use  proper  tools  or  appliances 

provided 

3.  Violation  of  rules 

4.  Improper  act,  or  selection  of  improper 

method    of    doing    work    (by    work- 
men) 
IV.     Fault  of  Other  Industry 

36 


The  Situation  and  Its  Problems 

There  is  also  read  at  this  meeting  a  description 
of  the  accidents  occurring  at  other  plants,  which 
may  be  of  value  in  preventing  a  like  occurrence 
locally.  Moving  pictures  are  shown  and  topics  dis- 
cussed, of  interest  to  all.  The  recommendations 
made  by  the  workmen's  committees  are  submitted 
in  writing  to  the  superintendent  of  the  department 
affected,  and  their  completion  supervised  through 
the  general  plant  committee.   .   .   . 

In  addition  to  the  immensely  gratifying  results, 
as  effected  from  a  humanitarian  standpoint,  there 
has  been  a  distinct  financial  saving  effected.  It  may 
be  shown  that  the  cost  of  installing  and  maintaining 
the  mechanical  safeguards,  plus  the  cost  of  all  edu- 
cational work,  and  the  maintenance  of  an  organized 
safety  department,  is  more  than  offset  by  the  reduc- 
tion in  the  cost  of  personal  injury  settlements. 

Following  close  on  the  trail  of  the  accident  pre- 
vention is  a  modest  and  dignified  "Anti-Booze 
Fight."  OflBcials  and  safety  committeemen  alike, 
are  putting  up  for  the  calm  consideration  of  the 
workmen  in  general,  the  various  financial,  social  and 
industrial  aspects  of  the  liquor  habit.  These  efforts 
are  meeting  with  a  distinctly  gratifying  success. 
There  has  not  been  any  attempt  made  by  the  officials 
to  prohibit  the  use  of  liquor  by  employees.  .  .  . 
That  the  officials  are  governing  themselves  by  the 
same  principles  they  would  apply  to  the  workmen 
is  shown  by  the  increasing  number  of  teetotalers  in 
the  ranks  of  officers,  and  the  elimination  by  them  of 
wine  at  banquets  and  dinners.     Access  to  the  plant 

37 


Citizens  in  Industry 


for  the  distribution  of  milk  is  granted  to  milk  deal- 
ers, and  regular  routes  and  prescribed  distributing 
stations  are  provided  by  the  Company.  The  daily 
distribution  in  summer  totals  1,400  quarts  of  milk. 

Two  visiting  nurses  are  employed,  who  visit  the 
families  of  employees  for  gratuitous  nursing  service, 
instruction  in  housekeeping,  sanitation,  preparation 
of  food  for  the  sick,  infant  welfare,  etc.  These 
nurses  are  members  of  the  staff  of  the  Visiting 
Nurses'  Association  of  Chicago,  but  are  detailed  to 
the  South  Works  of  the  Illinois  Steel  Company,  and 
all  their  expenses  are  paid  by  the  Company.  Some 
idea  of  their  activities  may  be  gained  from  the  fol- 
lowing statistics : 

Total  number  of  patients  cared  for  during  1914....     970 

Total  number  of  visits  to  homes 3)793 

Total  number  of  office  interviews 3.134 

When  the  visiting  nurses  began  their  work,  many 
cases  came  to  light  where  there  was  need  of  imme- 
diate financial  or  material  assistance  in  the  purchase 
of  sick-room  supplies,  etc.,  but  there  were  objections 
on  the  part  of  employees  and  their  families  to  receiv- 
ing these  supplies  as  a  donation  from  the  Company, 
on  account  of  a  natural  feeling  of  repugnance  for 
charity  which  exists  among  American  workmen.  As 
a  result  of  the  need  of  immediate  assistance  in  cases 
of  destitution,  and  the  objection  to  charitable  dona- 
tions, there  was  organized  a  "Good-Fellow  Club," 
which  several  hundreds  of  the  workmen  have  joined. 

38 


The  Situation  and  Its  Problems 

The  membership  dues  are  optional,  between  the 
limits  of  ten  and  fifty  cents  per  month,  and  the  money 
so  raised  is  placed  at  the  disposal  of  the  visiting 
nurses,  subject  to  certain  restrictions  by  the  manage- 
ment of  the  Good-Fellow  Club.  The  Good-Fellow 
Club  is  distinctly  an  employees'  organization,  and 
the  Company  does  not  contribute  a  cent  to  its  sup- 
port. The  revenue  derived  from  dues  and  donations 
during  19 14  was  approximately  $4,000,  practically 
all  of  which  went  for  relief  work  and  such  items  as 
5,906  quarts  of  milk,  265  grocery  orders,  wheel- 
chairs, sick-room  necessities,  porch  screens,  main- 
tenance of  inmates  of  sanitariums,  etc. 

The  Club  made  over  an  unsightly  vacant  lot  in  a 
congested  district  into  a  well-equipped  playground, 
which  was  maintained  during  the  summer  months  for 
the  children  and  babies  of  the  neighborhood.  The 
average  daily  attendance  during  the  summer  months 
was  72  children,  10  babies  and  25  adults.  The  total 
number  of  days  spent  by  children,  babies  and  adults 
combined,  according  to  the  daily  average,  reached 
the  startling  number  of  6,444. 

The  Good-Fellow  Club  was  organized  in  June, 
19 1 2,  and  incorporated  in  March,  19 13,  and  has  a 
steadily  growing  membership.  At  Christmas  time, 
1 9 14,  191  baskets  of  dinners  and  toys  were  distrib- 
uted to  needy  families  in  the  neighborhood. 

The  Illinois  Steel  Company  practically  supports  a 
large  settlement  house,  located  In  this  immediate 
vicinity,  and  known  as  the  South  End  Center.  In 
addition  to  the  support  given  to  this  establishment 

39 


Citizens  in  Industry 


by  the  Company,  the  officials  of  the  plant  donate 
generously  of  their  individual  earnings,  many  of 
them  subscribing  to  regular  monthly  gifts  of  $5.00 
each.  It  has  been  the  custom  at  the  plant  for  many 
years  to  have  an  annual  banquet  just  prior  to  Christ- 
mas time,  which  is  participateci  in  by  the  heads  of 
each  department  and  their  assistants.  Prior  to  19 14 
this  banquet  was  usually  held  in  the  Loop  district, 
and  wine  was  served,  bringing  the  cost  of  the  dinner 
up  to  $5.00  or  more  per  plate.  In  1914,  however, 
the  organization  members  voted  unanimously  to  re- 
strict their  dinner  cost  to  $1.00  and  hold  their  ban- 
quet in  the  regular  clubroom  of  the  plant,  and  con- 
fine their  entertainment  to  that  furnished  by  local 
talent.  The  difference  in  cost  was  donated  to  char- 
ity, and  amounted  to  more  than  $400.  By  such  acts 
as  this,  the  members  of  the  South  Works  organiza- 
tion have  come  to  be  known  as  being  deeply  inter- 
ested in  the  moral  and  social  betterment  of  the  entire 
community,  and  the  mill  men  are  usually  found  to 
be  active  in  local  organizations,  such  as  the  Commu- 
nity Y.  M.  C.  A.  plan.  The  Calumet  Recreation 
Association,  The  South  Chicago  Business  Men's 
Association,  and  various  charitable  orders. 

Coal  Is  given  free  of  charge  to  all  of  the  churches 
in  the  Immediate  vicinity  of  the  plant,  and  to  all 
destitute  families.  Distribution  of  coal  for  charity 
Is  accomplished  through  the  various  relief  organiza- 
tions, such  as  the  United  Charities,  the  South  End 
Center,  7  he  Women's  Benevolent  Association,  The 
Catholic  Ladies'  Aid  Society,  St.   Michael's  Parish 

40 


The  Situation  and  Its  Problems 

Society,  etc.  In  all  cases  the  Company  donates  the 
coal  gratuitously,  and  in  a  majority  of  the  cases 
pays  the  teaming  charges  as  well.  In  the  months 
of  October,  November  and  December,  19 14,  this 
distribution  of  coal  amounted  to  1,376  gross  tons. 

The  distribution  of  pensions  in  conformity  to  the 
rules  of  the  United  States  Steel  and  Carnegie  Pen- 
sion Fund,  to  veterans  In  the  service  of  the  corpora- 
tion's subsidiaries,  is  carried  out  through  the  depart- 
ment of  labor  and  safety.  Every  month  a  personal 
representative  of  the  General  Superintendent  calls 
upon  each  of  the  65  pensioners  and  delivers  a  pen- 
sion check,  the  amount  of  vv^hlch  is  based  upon  the 
employee's  length  of  service  and  rate  of  pay.  The 
average  amount  is  approximately  $35.00  per  month 
per  Individual.  This  personal  delivery  of  the  pen- 
sion checks  enables  the  General  Superintendent  to 
keep  closely  in  touch  with  the  veterans,  making  It 
possible  for  him  to  alleviate  distressing  conditions, 
should  they  arise.  All  of  the  pensioners  are  given  a 
special  pass,  entitling  them  to  come  on  the  plant  at 
any  time,  and  Insuring  special  courtesies  from  all 
employees.  The  pensioners  are  encouraged  to  visit 
with  their  former  cronies,  and  a  conception  of  the 
good  feeling  prevailing  generally  among  the  em- 
ployees and  management  may  be  had  only  by  partici- 
pation In  a  reunion  of  these  veterans. 

In  this  description  of  the  industrial  betterment 
activities  of  the  Illinois  Steel  Company  should  be 
cited  the  plan  adopted  during  periods  of  financial 
depression,  viz. :  the  apportioning  of  available  em- 

41 


Citizens  in  Industry 


ployment  as  generally  as  possible  among  the  needy 
employees.  Thus,  during  the  depression  of  19 14, 
instead  of  discharging  a  large  percentage  of  Its  em- 
ployees, the  Company  maintained  all  the  married 
men,  and  those  having  people  dependent  upon  them 
for  support,  on  their  payrolls,  and  prorated  the 
work  among  them.  There  Is  no  doubt  but  what  this 
action  had  a  great  deal  of  effect  in  preventing  a 
large  number  of  cases  of  absolute  destitution.  Even 
in  times  of  normal  business  activity  continuity  of 
service  Is  fostered  by  Interchanging  men  among  the 
several  other  departments  of  the  plant,  on  occasion 
of  breakdowns  or  reduction  of  force  in  a  particular 
department. 

Another  feature  of  corporation  service,  having  a 
great  deal  of  influence  on  the  relations  between  the 
workmen  and  officials.  Is  the  plan  of  distribution  of 
stock  of  the  Company  to  employees.  For  several 
years  past  the  employees  have  annually  been  given 
the  privilege  of  subscribing  to  common  or  preferred 
stock  of  the  United  States  Steel  Corporation  at  a 
price  slightly  under  the  market  quotations.  Em- 
ployees are  permitted  to  pay  for  this  stock  at  a  maxi- 
mum rate  of  25  per  cent,  of  their  salary  per  month, 
or  a  minimum  rate  of  $1.50  per  month  per  share 
for  common,  and  $2.50  per  month  per  share  for 
preferred  stock. 

The  stock  is  set  aside  in  their  name  on  the  date 
of  subscription  and  all  dividends  are  credited  to 
their  account,  5  per  cent,  interest  being  charged  for 
deferred  payments.    In  addition  to  the  regular  stock- 

42 


The  Situation  and  Its  Problems 

holder's  dividends,  there  Is  granted  to  the  employees 
an  additional  annual  dividend  for  five  years,  of 
$5.00  per  share  for  preferred,  and  $3.00  per  share 
for  common  stock.  If  an  employee  cancels  his  sub- 
scription before  delivery  of  the  stock  is  made,  all  of 
his  money  is  returned  to  him,  plus  5  per  cent.  Interest. 
If  he  sells  his  stock,  or  leaves  the  employ  of  the 
Company  after  stock  has  been  Issued  to  him,  he  for- 
feits the  special  dividends  referred  to  above,  and 
these  are  then  set  aside  by  the  Corporation  manage- 
ment Into  a  special  fund,  which  is  divided  among  the 
persistent  stockholders  at  the  end  of  the  five-year 
period.  The  additional  bonus  derived  In  this  man- 
ner has  ranged  from  $15.00  to  over  $60.00  per 
share.  Besides  the  very  remunerative  rate  of  inter- 
est derived  from  an  investment  of  this  nature,  It  has 
the  added  value  of  encouragement  to  regular  savings. 
From  the  foregoing  it  may  be  deduced  that  the 
officials  of  the  Company  have  exercised  a  benign 
Influence,  not  only  In  their  relations  with  the  men 
within  the  plant,  but  outside  as  well.  In  fact,  it  Is 
the  exercise  of  broad  human  Interest,  and  a  desire 
to  be  absolutely  fair  on  all  questions,  which  has  con- 
tributed to  the  remarkable  success  achieved  by  South 
Works  In  a  maintenance  of  satisfactory  labor  con- 
ditions, and  gratifying  production  and  cost  records. 

GOVERNMENTS   AS    EMPLOYERS 

12.     Aside  from  social  legislation  to  control  or 
direct  the  actions  of  private  employers  and  corpora- 

43 


Citizens  In  Industry 


tlons,  we  must  not  forget  that  federal,  state  and 
municipal  governments  are  employers  of  labor  on  a 
vast  scale.  The  army,  navy,  post-office,  public 
works,  schools,  police  and  fire  departments  are  in 
control  of  a  multitude  of  persons  who  live  by  wages 
or  small  salaries.  These  great  administrative 
organs  represent  the  wealth,  honor,  reputation  and 
duty  of  the  entire  people,  and  they  are  under  moral 
obligations  to  set  an  example  of  humane  treatment 
to  workers.  There  are  flagrant  abuses  to  correct  in 
the  conditions  of  post-office  clerks  who  are  forbid- 
den to  organize  trade  unions  and  present  grievances 
through  elected  representatives.  While  expendi- 
tures fall  on  tax-payers,  including  wage-earners,  and 
should  not  be  wasteful  or  extravagant,  and  while 
public  employees  should  be  strictly  held  to  loyal 
service,  there  is  wide  room  for  reasonable  improve- 
ment in  conditions,  hours,  treatment  and  pay  of 
many  persons  in  public  employ.^ 


THE      TRANSITION      FROM      PHILANTHROPY      AND     WELFARE 
SCHEMES    TO    SOCIAL    LEGISLATION  ^ 

13.  The  history  of  charity  indicates  the  direction 
we  are  to  travel.  There  we  can  discover  the  gradual 
transformation    of   individual,    private,    exceptional 

^  The  physical  condition  of  certain  post-offices  is  a  dis- 
grace and  an  injustice,  especially  as  organizations  of  em- 
ployees are  suppressed  by  the  administration. 

^Hanus:  "Das  Programm  der  Wohlfahrtspflege,"  in 
Schriften  der  Zentralstelle  fiir  Volkswohlfahrt,  i,  33. 

44 


The  Situation  and  Its  Problems 

kindness  to  custom  and  law.  In  medieval  times  a 
man  who  founded  a  school,  built  a  road  or  bridge, 
or  established  a  hospital  for  the  indigent  sick  was 
canonized  as  a  saint  and  even  had  a  surplus  of  good- 
ness to  carry  him  well  on  the  way  to  celestial  bliss. 
Now  roads,  bridges,  schools  and  hospitals  are  paid 
for  by  public  taxation  and  belong  to  all. 

It  should  not  surprise  us,  therefore,  to  find  that 
the  benevolent  works  of  employers,  which  now  seem 
to  be  gracious  and  liberal  gifts,  should  soon  be  re- 
quired by  law.  In  the  case  of  old-age  pensions,  sick- 
ness and  accident  insurance,  hygienic  requirements  of 
workshops,  and  vocational  training,  the  transition 
is  already  far  advanced;  further  evolution  in  the 
same  direction  is  only  a  matter  of  time.  This  is  not 
to  the  discredit  of  philanthropy.  Civilization  owes 
much  to  the  seers  and  pioneers,  and  they  deserve 
honor. 

The  cotton  mills  of  the  South  have  been  severely 
criticized  by  visitors  from  various  parts  of  the  coun- 
try. The  opening  of  a  new  industry  has  attracted 
many  families  from  the  rural  and  mountainous 
regions  where  they  lived  in  extreme  poverty,  on  poor 
soil,  without  means  of  transportation,  without 
credit  for  investment,  or  schools,  or  outlook  for 
the  next  generation.  Since  1880,  it  is  said  that  of 
the  110,000  operatives  now  employed  in  the  manu- 
facture of  cotton  goods  in  the  South,  about  80,000 
were  twenty  years  ago  poverty-stricken,  illiterate, 
discouraged,  without  skill.  The  cotton  mills  gave 
them  employment  and  a  cash  income  they  had  never 

45 


Citizens  in  Industry 


before  known.  "The  first  generation  of  operatives 
coming  from  conditions  above  described  brought 
fingers  so  stiffened,  hands  so  hardened  by  toil,  as  to 
be  totally  unfit  for  handling  the  soft,  unspun  cotton; 
it  followed  that  the  children,  with  still  supple  fingers, 
were  pressed  into  service  as  spinners."  At  first  they 
went  joyfully,  for  it  was  a  novel  experience,  and  the 
shining  silver  was  to  them  a  beautiful  sight.  They 
did  not  know  what  premature  factory  labor  does 
to  children;  their  parents  did  not  know;  the  local 
physicians  had  no  experience  with  occupational  dis- 
eases; the  employers  did  not  always  know;  there  was 
no  public  opinion,  no  social  legislation,  no  trade 
unions.  Abuses  were  Inevitable;  perhaps  reports 
have  sometimes  been  "yellow"  and  exaggerated,  but 
the  reality  was  too  bad  to  be  tolerated  long.  The 
employers  were  not  totally  hardened.  Some  sort 
of  w^elfare  work  has  been  started  in  every  mill  In 
North  and  South  Carolina  and  Virginia.  In  the 
more  advanced  villages  the  mill  companies  support 
a  welfare  hospital.  New  dwellings  have  been  built 
with  four  to  six  rooms  each.  Kindergartens,  schools, 
churches,  club-houses,  recreation  facilities  have  been 
provided.^ 

Experience  with  depressing  conditions  In  factory 
and  home,  and  employment  of  child  labor,  soon 
showed  the  more  progressive  manufacturers  that 
they  were  parties  to  exploitation  and  destruction  of 
life,  and  conscience  pricked  them.     But  some  were 

^  Airs.  J.  Borden  Harriman:  Anuals  of  the  American 
Academy,  Mar.,  1910,  47  ff. 

46 


The  Situation  and  Its  Problems 

tardy,  obtuse,  blinded  by  quick  profits,  and  their 
competition  was  an  obstacle  to  advance.  The  Na- 
tional Child  Labor  Committee,  the  Consumers' 
League,  and  humane  agitators,  perhaps  even  "muck- 
rakers"  stirred  the  public  mind.  The  people  of  the 
South  are  gentle,  chivalrous,  just;  they  need  only  to 
know  what  is  right  to  be  induced  to  act.  Legisla- 
tion completes  the  work  of  individual  humanity,  and 
brings  up  the  reluctant  miser  to  the  level  of  a  fair 
standard.  The  pioneer  philanthropic  gifts  of  "wel- 
fare work"  were  factors  in  this  improvement.  With- 
out excusing  the  cruelty  which  has  been  proved  we 
may  well  believe  that  the  development  on  the  whole 
has  been  in  the  direction  of  larger  welfare.  A  new 
spirit  is  taking  possession  of  the  South  and  every 
humanitarian  cause  there  has  a  welcome  and  a 
sympathetic  hearing. 


CHAPTER    II 

HEALTH  AND  EFFICIENCY:   THE  FUNDAMENTAL  IN- 
TEREST OF  ALL  CITIZENS 

THE     NATIONAL    INTERESTS    AFFECTED    BY     EFFICIENCY    OF 
WORKMEN  ' 

The  productive  power  of  the  workman  is  a  uni- 
versal interest;  first  of  all  to  the  wage-earner  and 
his  family.  Many  factors  affect  the  rate  of  income, 
but  individual  efficiency  is  primary.  Men  are  paid 
for  production,  and  there  is  a  general  tendency  to 
pay  them  in  proportion  to  their  efficiency.  The 
weak,  awkward,  lazy,  blundering  mechanic  does  not 
receive  as  much  as  the  strong,  skillful,  industrious, 
accurate  and  alert  fellow-workman  at  his  side.  The 
employer  is  interested  in  the  maximum  efficiency  of 
the  employee  because  it  is  one  of  the  chief  causes  of 
higher  rates  of  profits,  interest,  or  dividends. 
Stockholders  are  interested,  because  their  invest- 
ments are  more  fertile  in  proportion  to  the  increase 
of  product.  The  nation  finds  in  a  sound,  strong 
and  vigorous  labor  force  the  physical  basis  of  Its 
power  and  greatness. 

^  See  publications  of  The  Life  Extension  Institute,  25  West 
45th  St.,  New  York  City. 

48 


Health  and  Efficiency 


Industrial  efficiency  is  not  the  end  of  human 
existence;  there  are  higher  concerns;  but  this  is 
essential  as  a  basis;  the  noblest  spire  must  have  a 
solid  foundation  in  the  earth.  We  often  hear  it  said 
— and  we  say  it  ourselves  in  the  proper  connection — 
that  man  's  more  than  wealth  or  production.  True; 
but  man  lives  by  the  productive  process  and  cannot 
live  otherwise. 

Nay,  take  my  life  and  all;  pardon  not  that; 
You  take  my  house  when  you  do  take  the  prop 
That  doth  sustain  my  house;  you  take  my  life 
When  j'ou  do  take  the  means  whereby  I  live. 

Merchant  of  Venice,  Act  IV,  Sc.  i. 

Man  is  more  than  money,  but  on  this  planet  man 
cannot  live  without  money,  and  his  present  domicile 
and  duty  are  here. 

Socialists  sometimes  object  to  the  persistent  em- 
phasis on  efficiency  and  to  the  efforts  of  employers 
to  get  as  much  as  possible  out  of  their  employees. 
It  is  at  once  admitted  that  critics  can  find  only  too 
many  cases  of  shameless  exploitation  of  men,  women 
and  children  for  the  sake  of  profits  and  dividends, 
for  which  no  decent  excuse  can  be  pleaded.^  But 
Industrial  efficiency  would  be  just  as  vital  to  the 
socialistic  state  as  it  is  to  the  capitalistic  manager 
system.  One  chief  objection  to  exploitation  is  that 
it  does  not  get  enough  out  of  the  workers.  It  is 
irrational  as  well  as  mean,  for  it  tries  to  get  a  ton's 
service  out  of  a  pound  of  fuel.     The  time  will  never 

^  C.  Hanford  Henderson :     Pay  Day. 

49 


Citizens  in  Industry 


come  when  society  can  relax  efforts  or  be  content 
with  indifferent,  feeble  and  incompetent  operativ^es. 
It  is  rational,  therefore,  for  us  in  the  present  age  to 
do  all  in  our  power  to  improve  the  quality  and  the 
energy  of  labor  force.  Even  now  managers  are 
learning  that  the  human  machine  requires  exquisite 
care;  that  strain  and  fatigue  must  be  avoided;  that 
clear  brains  and  steady  nerves  have  an  immediate 
value  in  relation  to  investments.  More  strong  man- 
agers than  ever  before  have  heard  the  appeal  of 
John  Ruskin:  "Men  are  enlisted  for  the  labor  that 
kills;  let  them  be  enlisted  for  the  labor  that  feeds; 
and  let  the  captains  of  the  latter  be  held  as  much 
gentlemen  as  the  captains  of  the  former." 

If  ever  Socialism  comes  to  control  the  industrial 
process,  it  may  make  a  new  selection  of  managers 
and  divide  the  product  without  reference  to  profits; 
but  if  it  does  not  at  once  plunge  the  nation  into  eco- 
nomic ruin  it  must  adopt  and  improve  precisely  the 
same  kind  of  devices  which  we  have  now  to  discuss. 
It  seems  important  to  make  this  clear  because  the 
wage-earners  are  more  and  more  looking  in  the  di- 
rection of  Socialism  and  are  somewhat  impatient  of 
what  their  more  restless  leaders  call  half-measures, 
unworthy  of  their  attention.  The  more  farseeing 
and  instructed  among  them,  however,  declare  that 
they  will  take  all  they  can  get  now  and  carry  it  over 
ready-made  into  the  new  and  happier  order  which, 
they  tell  us  with  exuberant  confidence  and  constant 
reiteration,  is  almost  at  the  door.  At  present  we 
may  leave  to  these  sanguine  agitators  all  the  glory 

50 


Health  and  Efficiency 


of  prophets  while  we  invite  them  to  cooperate  in 
producing  what  in  any  event  seems  desirable  for  the 
immediate  requirements  as  well  as  for  the  unre- 
vealed  future.  It  is  curious  that  before  we  discuss 
the  means  for  promoting  "efficiency"  we  must  estab- 
lish the  fact  that  it  Is  desirable;  because  we  con- 
stantly meet  objections  which  assume  that  It  is  better 
to  restrict  production  of  goods  in  the  Interest  of  the 
wage-earners.  If  the  case  were  simple,  as  when 
three  brothers  are  farming  their  own  land  as  part- 
ners, there  would  not  be  a  shadow  of  doubt  as  to 
the  desirability  of  getting  as  large  a  crop  as  the  soil 
could  yield  to  their  common  labor.  The  larger 
the  product,  the  larger  each  Individual  share. 

Nor  does  the  case  seem  more  difficult  to  interpret 
in  the  case  of  national  wealth  and  production;  for 
surely  a  product  of  two  billion  will,  if  equitably 
divided,  give  each  citizen  more  means  of  enjoyment 
than  a  product  of  one  billion;  that  Is  a  problem  of 
simple  division  which  any  schoolgirl  can  solve  with 
pencil  and  paper.  But  skepticism  arises  because  the 
product  of  national  industry  does  not  appear  to  be 
equitably  divided.  Many  men  work  hard,  help  in- 
crease national  wealth,  and  enjoy  little  of  the  prod- 
uct. Frequently  they  are  crippled  In  the  process  and 
abandoned  by  their  brothers  and  partners  in  the 
midst  of  a  mighty  harvest.  It  is  this  actual  experi- 
ence which  makes  many  workers  skeptical  about 
"efficiency,"  for  it  seems  to  them  to  increase  the 
strain,  often  to  leave  them  unemployed,  and  to  yield 
no  larger  wages. 

51 


Citizens  in  Industry 


The  trade-union  rules  which  forbid  an  exceptional 
man  to  speed  up,  to  set  a  pace,  to  double  the  product 
of  his  machine  each  day,  are  not  altogether  foolish 
and  wicked.  There  is  a  measure  of  reason  in  their 
resistance.  It  will  not  do  to  dismiss  their  objections 
with  the  assertion  of  "ignorance  of  economic  laws," 
for  their  leaders  are  often  very  keen  students  of 
economics  and  they  learn  in  the  hard  school  of 
experience. 

If  we  desire  to  win  "organized  labor"  to  enthusi- 
astic support  of  our  campaign  for  increased  effi- 
ciency, we  must  make  it  clear  to  them,  not  merely 
by  argument  but  by  practical  measures,  that  the 
wages  will  be  increased,  that  employment  will  be 
more  regular  and  reliable,  and  that  they  will  not 
be  physically  ruined  by  the  new  methods.  Many 
of  the  wiser  advocates  of  efficiency  understand  this 
situation  and  they  are  taking  measures  to  set  the 
doubts  at  rest.  These  methods  will  be  critically  ex- 
amined in  this  and  subsequent  chapters;  and  first  of 
all  we  seek  a  scientific  guarantee  that  the  workers 
shall  be  improved  in  vitality  and  not  be  used  up  in 
their  toil. 

Even  when  corporal  punishment  or  dietary  dis- 
cipline becomes  necessary  in  prison  the  doctor  stands 
by  to  see  that  the  pain  or  deprivation  is  not  carried 
so  far  as  to  affect  bodily  integrity.  Surely  honest 
workingmen  are  entitled  to  at  least  as  much  scien- 
tific supervision  as  convicts  while  they  produce  the 
comforts  of  existence  for  us  all  by  painful  toil  and 
frequent  peril  of  life  and  limb;  the  physician  must 

52 


Health  and  Efficiency 


give  scientific  precision  to  standards  of  health  and 
apply  them  to  measures  recommended  by  engineers. 

The  "captain  of  industry"  cannot  escape  the  re- 
sponsibihty  of  an  officer  in  command.  He  represents 
dominion,  and  inside  the  shop  he  is  king.  Therefore 
it  is  not  charity,  but  justice  which  requires  him  to  so 
control  the  conditions  of  the  work-place  that  citizens 
of  the  Republic  shall  receive  no  damage.  In  foreign 
lands,  the  nation  protects  its  citizens  with  the  sacred 
folds  of  its  flag;  it  proposes  to  do  as  much  for  its 
citizens  in  shops. 

It  would  transcend  the  limits  and  plan  of  this 
book  to  reprint  here  the  details  of  measures  and 
arrangements  of  individual  employers  to  protect 
physical  integrity  and  vigor. ^  They  can  all  be  con- 
veniently, if  only  provisionally,  classified  in  three 
groups:  measures  for  safety,  health  and  comfort. 
Of  course  this  or  any  other  division  must  be  some- 
what arbitrary,  because  the  devices  may  have  for 
their  purpose  two,  or  even  all,  of  these  ends. 

It  is  true  that  we  are  considering  here  only  the 
voluntary  activities  of  employers;  while  many  of 
these  devices  are  either  already  matters  of  legal 
obligation  or  are  certain  to  be  included  by  law  in 
the  near  future.  Yet  it  is  proper  to  consider  these 
measures  in  this  connection  because  the  welfare 
work  of  the  more  advanced  and  thoughtful  employ- 
ers pioneers  the  way  for  laws,  shows  what  is  advis- 
able and  practicable,  technically  and  financially,  and 
creates  public  opinion  in  favor  of  requiring  the  in- 

'^  See  W.  H.  Tolman:    Safety,  chap.  III. 


Citizens  in  Industry 


ferior  managers   to   come   up   to   the   lev^el   of   the 
superior. 

There  is  always  a  difference  of  quality  In  the  use 
of  safety  devices,  even  when  legally  required,  in  an 
establishment  inspired  by  a  humane  spirit  and  In 
another  where  nothing  but  pecuniary  profit  Is  con- 
sidered. There  Is  always  opportunity  for  goodwill 
and  quick  intelligence  even  under  the  most  advanced 
legislation.  Law  can  never  do  the  work  of  kind- 
ness and  honest  desire  to  benefit  our  fellow-men;  It 
can  never  go  beyond  the  average  and  the  necessary 
standard;  it  can  never  be  equal  to  the  best  possible. 
It  Is  not  so  much  a  question  of  expenditure  of  money 
on  costly  protective  devices,  but  more  a  question  of 
competent,  alert  and  sincere  direction  by  the  man- 
agers. In  some  large  corporations  certain  repre- 
sentatives of  the  directors,  with  special  training  for 
their  duties,  are  set  apart  for  the  administration  of 
these  measures.^ 

SAFETY   DEVICES 

The  capitalist  managers  of  manufacturing  estab- 
lishments are  as  a  rule  ready  to  protect  the  physical 
Integrity  of  the  employees;  it  is  fair  to  say  that  the 
deliberately  negligent  or  cruel  employer  Is  rare. 
Nevertheless  the  statistics  of  accidents  and  diseases 

^  E.  G.  In  the  famous  Krupp  plant  at  Essen,  Germany, 
which  employs  about  6q,ooo  men,  about  one-fourth  of  the 
whole  board  of  directors  give  all  their  time  to  the  welfare 
institutions. — Mr.  Parker,  National  Civic  Federation,  Tenth 
Annual  Meeting,  1909. 

54 


Health  and  Efficiency 


due  to  occupation  reveal  an  appalling  number  of 
injuries  and  deaths  which  might  be  prevented  by  the 
use  of  measures  already  approved  by  trial.  The 
chief  difficulty  seems  to  be  that  hitherto  stockholders 
and  managers  have  never  in  this  country  tried  to  set 
before  themselves  a  modern  standard  of  protective 
and  preventive  measures,  and  no  adequate  means 
exist  for  their  education;  although  organization  to 
this  end  is  being  rapidly  developed. 

It  is  true  that  the  employers'  liability  laws  have 
done  something  to  remind  managers  that  they  might 
be  obliged  to  pay  heavily  for  an  injury  or  a  death 
due  to  their  own  negligence.  But  the  law  contained 
no  definite  standard  in  itself,  and  the  judicial  inter- 
pretations have  been  vague,  contradictory  and  exas- 
perating to  workmen;  the  awards  have  been  uncer- 
tain, the  litigation  costly  and  tedious;  while  the 
workman  had  little  chance,  pitted  against  company 
physicians  and  lawyers  or  the  claim  agents  of  power- 
ful casualty  companies,  to  make  his  claim  appear 
just.  The  Influence  of  such  a  law  on  the  prevention 
of  accidents  and  sickness  has  been  real,  but  by  no 
means  satisfactory;  in  many  situations  it  has  been 
Imperceptible  in  the  presence  of  multiplied  disasters. 

Responsible  organizations  of  manufacturers  have 
recently  admitted  and  sincerely  advocated  the  prin- 
ciple that  a  business  which  injures  men  should  pay  at 
least  part  of  the  cost  of  human  wreckage  which  It 
produces  and  not  load  the  charity  funds  of  the  com- 
munity with  this  burden.  This  principle  has  been 
generally  accepted  and  has  already  been  embodied 

5$ 


Citizens  in  Industry 


in  "compensation"  laws  and  "accident  insurance" 
laws  of  several  states  of  the  Union;  and  these  new 
laws  require  the  employers  to  pay  indemnities  to 
injured  workmen  even  when  negligence  of  the  em- 
ployer could  not  be  proved,  as  it  seldom  can  be 
proved. 

Still  more  effective  Is  the  "factory  legislation" 
which  prescribes  a  standard  of  safety  and  health, 
provides  for  inspectors,  and  penalizes  managers  who 
refuse  or  neglect  to  use  the  protective  measures  re- 
quired In  the  law.  These  laws  are  continually  re- 
vised and  improved,  medical  inspectors  are  some- 
times added  to  the  force,  and  the  degree  of  security 
is  enhanced. 

Where  industrial  Insurance  is  required  to  guaran- 
tee the  compensation,  and  the  premium  rates  are 
raised  or  lowered  with  the  number  of  the  injured, 
the  interest  of  the  employer  in  preventing  accidents 
and  sickness  Is  increased,  and  he  is  more  eager  to 
avoid  such  losses  by  using  suitable  modern  appli- 
ances. 

Not  only  do  employers  need  education  in  this 
noble  art  of  human  conservation,  but  the  workmen, 
themselves,  require  Information  and  training.  In 
the  last  analysis  no  devices  can  take  the  place  of 
personal  Intelligence,  watchfulness  and  care.  Every 
shop  should  provide  thoroughly  and  systematically 
for  the  Instruction  and  drill  of  the  force,  so  that 
at  any  moment  any  workman  would  know  what  to 
do  In  case  of  fire,  or  Injury  from  any  cause,  to  apply 
"first  aid  to  the  sick  and  injured,"  and  how  to  use 

S6 


Health  and  Efficiency 


the  costly  appliances  introduced  for  the  comfort, 
safety  and  health  of  the  employees. 

The  clear  duty  and  real  interest  of  the  capitalist 
manager  in  relation  to  the  law  is  to  see  that  it  is 
enforced  in  good  faith,  that  its  working  is  carefully 
watched  for  results,  and  that  when  it  fails  to  work 
well  it  should  be  studied  by  some  impartial  and  com- 
petent association  with  a  view  to  its  amendment.^ 

Here  is  a  program  of  obligations  drawn  up  by  a 
competent  authority  on  occupational  hygiene. - 

Responsibility   of  Employers 

1.  Mental   and   physical   fitness   of   employees.      Physical 

examination  prior  to  employment  and  periodically 
thereafter. 

2.  Wages 

a.  Adequate    to    maintain    the    employees    as    to    ( I ) 

proper  food  (2)  clothing  (3)  hours  for  rest  and 
recreation,  and  thereby  maintain  an  efficient  and 
healthy  mind  and  body 

b.  Increase  or  promotions  according  to  length  of  serv- 

ice to  provide  for  family  and  increase  in  family 

c.  Adequate  to  save  for  an  old  age  or  pay  for  old-age 

pension 

3.  Place  of  Employment 

a.  General  sanitary  conditions  (i)  proper  heating  (2) 
proper    humidity    (3)    proper    lighting    (4)     no 

^  In  this  connection  the  Wisconsin  system  is  specially 
worthy  of  study.  See  J.  R.  Commons:  Labor  and  Adminis- 
tration, and  the  publications'  of  the  Wisconsin  Industrial 
Commission. 

2  Dr.  B.  S.  Warren:  "United  States  Public  Health  Ser- 
vice," in  Public  Health  Reports,  May  29,  1914. 

57 


Citizens  in  Industry 


overcrowding  (5)  proper  ventilation  (6)  proper 
cleaning  (7)  clean  water  supply 

b.  Special  dangers  ( i )  substitute  harmless  or  least  dan- 

gerous material  for  use  of  dangerous  material 
whenever  practicable  (2)  safe  handling  of  dan- 
gerous material  by  mechanical  devices,  etc. 

c.  Removal  of  dust,  gases,  fumes 

d.  Safeguarding  against  accidents 

e.  Equipment  necessary  for  personal  hygiene  ( i )  wash- 

ing facilities  (2)  toilets  (3)  rest-rooms  (4)  lock- 
ers, etc. 

4.  Mental  and  physical  energ>'  expended 

a.  Hours  of  labor    (i)   length  of  work  day  (2)  over- 

time (3)   night  work 

b.  Fatigue   ( i )   rest,  recreation  and  sleep  necessary  to 

eliminate  waste  and  restore  body  cells  prior  to 
beginning  day's  work  (2)  posture,  speed  of  work 
or  attention  required  which  causes  unusual  strain 
to  be  eliminated  when  practicable,  or  adequate 
rest  periods  to  be  allowed  (3)  monotony  of  occu- 
pation as  cause  of  fatigue 

5.  Age  and  sex  of  employees 

a.  No  child  labor  under  fourteen  years 

b.  No  night  work  for  women,  young  people,  or  chil- 

dren 

6.  Compensation    for   sickness    and    accident   incident   to 

employment 

7.  Regular  employment  in  so  far  as  practicable 

8.  Medical    supervision  by  company  physicians 

a.  Prompt  medical  and  surgical  aid 

b.  Sanitary  inspections 

c.  Elimination  in  an  equitable  manner  of  the  mentally 

and  physically  unfit 

58 


Health  and  Efficiency 


g.     Contributor  to  sick  insurance  fund 
10.     Education  of  employees 

a.  Prevention  of  disease 

b.  Prevention  of  accidents 

c.  Special  rules  for  dangerous  processes 

He  also  shows  that  employees  themselves  have 
their  duties  as  to:  home  environment,  places  of  sur- 
gical relief,  contribution  to  sick-insurance  fund,  edu- 
cation. The  State  responsibility  relates  to  housing, 
hours  of  labor,  minimum  wage  scale,  medical  super- 
vision, pure  food  regulations,  pure  water  supply, 
special  measures  to  prevent  disease,  regulation  of 
social  insurance  or  compulsory  sick  and  old-age 
insurance,  and  education. 

"safety  first" 

Naturally  attention  was  first  directed  to  the  pre- 
vention of  so-called  "accidents,"  that  is  injuries 
caused  by  some  external  object,  as  hammer,  wheel, 
or  a  current  of  electricity  of  high  voltage;  because 
these  injuries  produce  visible  mutilations  and  spec- 
tacular sufferings  which  are  directly  and  obviously 
due  to  the  employment;  while  the  connection  of  occu- 
pation with  disease  may  not  be  clear  without  pro- 
longed and  skillful  medical  investigation. 

Teaching  Safety. — A  good  illustration  of  the  ne- 
cessity for  intervention  of  managers  in  the  conduct 
of  employees  is  found  in  the  perils  to  physical  in- 
tegrity from  the  ignorance  and  carelessness  of  men 

59 


Citizens  in  Industry 


in  hazardous  ^  occupations.  It  is  all  very  well  to 
say  that  men  are  capable  of  taking  care  of  them- 
selves; but  multitudes  of  our  laborers  are  simple 
peasants  from  European  agriculture,  and  they  know 
nothing  of  the  perils  of  a  coal  mine,  a  steel  mill,  or 
a  machine  shop;  nor  have  they  any  means  of  finding 
out  ways  of  safety.  It  has  been  said  that  men  love 
life  and  freedom  from  pain;  but  they  are  forgetful 
and  must  be  reminded  constantly  and  warned  of 
points  of  danger.  Brave  men  are  ashamed  to  show 
timidity  in  the  presence  of  their  fellows;  and  this  very 
good  quality  of  courage  is  their  peril.  It  is  the  man- 
ager who  has  the  right  to  give  the  warning  and  no 
one  else,  and  he  is  primarily  responsible  for  neglect. 

Men  are  organized  into  groups,  with  the  motto 
"Safety  First."  If  a  member  of  the  group  notices 
that  a  fellow-worker  is  carelessly  risking  life  or  limb, 
he  reports  him,  and  a  fine  or  suspension  compels  him 
to  consider  more  carefully  the  next  time  he  walks 
on  the  railway  tracks,  or  swings  on  a  footboard  cov- 
ered with  ice,  or  leaves  a  loose  board  to  trip  the 
next  brakeman  on  the  top  of  a  freight  car. 

The  superintendent  in  a  steel  works  posts  no- 
tices in  the  Polish,  Croatian,  Roumanian,  Slovak, 
and  Hungarian  languages:  "Wear  goggles  when 
working  around  circular  saws,  chipping,  handling 
acids,  cutting  cables,  working  at  emery  wheels." 

The  Industrial  Commission  of  Wisconsin  has  is- 
sued this  circular  of  warning  and  instructions: 

^  Any  occupation  is  "hazardous"  in  which  workmen  are 
hurt. 

60 


Health  and  Efficiency 


"The  Industrial  Commission  [of  Wisconsin]  has 
recently  Investigated  the  experience  of  a  number  of 
manufacturing  concerns  which  have  made  reductions 
of  from  fifty  to  seventy-five  per  cent,  in  accidents. 
Below  Is  given  a  brief  outline  of  the  ways  and 
means  which  these  companies  have  found  to  be  the 
most  effective  In  getting  results. 

"Guards  i-j — Inspection  and  Education  2-j 

"All  of  these  companies  have  found  that  not  more 
than  one-third  of  the  reductions  which  have  been 
made,  have  been  accomplished  by  means  of  mechan- 
ical guards  or  any  mechanical  equipment,  while  two- 
thirds  have  been  accomplished  by  education,  inspec- 
tion and  cooperation  of  the  workmen. 

"Begin  at  the  Top — Officers  Must  Do  Their  Share 

"The  first  step  In  safety  organization  is  for  the 
owners  of  the  business  to  recognize  safety  work  and 
to  give  it  a  legitimate  place  in  the  organization,  and 
then  to  prove  their  interest  by  appropriating  the 
money  and  equipping  their  plant  with  proper  safe- 
guards. Unless  the  officers  do  their  part,  the  fore- 
men and  workmen  will  not  take  safety  seriously  and 
will  not  do  their  part.  An  attitude  of  absolute 
frankness  should  be  assumed  by  the  employers  and 
their  superintendents,  and  the  whole  problem  of 
accidents,  their  cause  and  prevention,  should  be 
discussed  with  the   workmen   and  both   should   as- 

6i 


Citizens  in  Industry 


sume  their  responsibility.  When  the  superintendents 
or  foremen  are  responsible  for  an  accident  it  should 
be  frankly  admitted,  and  when  the  workmen  are  to 
blame  it  should  be  stated  with  equal  frankness.  By 
far  the  most  important  factor  in  reducing  accidents 
is  to  get  the  real  intelligent  interest  and  cooperation 
of  the  workmen,  and  without  frankness  this  is  Im- 
possible.^ 

"Instruct  Every  Man 

"It  Is  indispensable  for  safety  that  every  work- 
man, especially  every  new  man  and  every  non-Eng- 
lish speaking  man,  should  be  carefully  Instructed  by 
his  foreman  with  regard  to  the  dangers  of  his  job. 
This  should  be  done  In  a  frank  and  kindly  manner, 
and  he  should  be  made  to  appreciate  the  part  which 
the  company  is  doing  and  the  larger  part  which  he 
alone  can  do  In  protecting  himself  and  his  fellows. 
Books  of  rules,  bulletins  and  signs  have  been  found 
useful  In  Instructing  the  men  and  keeping  before 
them  the  subject  of  safety. 

"Workmen  Are  the  Best  Inspectors 

"In  practically  all  of  the  companies  which  have 
accomplished  the  largest  reductions  in  accidents,  the 
plan  has  been  adopted  of  appointing  committees  of 

^  It  should  be  remembered  that  under  the  old  employers' 
liability  law,  when  negligence  must  be  proved  by  the  work- 
man, frankness  was  heavily  fined  and  the  most  powerful 
moves  to  concealment  and  deception  were  at  work  on  both 
sides.     Accident-insurance  laws  remove  this  temptation. 

62 


Health  and  Efficiency 


rank-and-file  workmen  as  Inspectors.  One  to  three 
men  are  appointed  in  each  large  department  to  serve 
one  or  two  months  and  are  given  an  opportunity 
once  a  week,  or  once  a  month,  to  make  Inspections 
and  to  report  their  findings  and  recommendations  to 
the  superintendent.  This  has  served  four  valuable 
purposes:  first,  when  the  men  are  recognized  and 
given  responsibility,  they  at  once  take  a  new  interest 
in  safety  and  take  pride  in  making  a  good  record; 
second,  through  their  new  interest  in  accidents  the 
men  acquire  much  valuable  Information  regarding 
the  cause  and  prevention  of  accidents;  third,  it  has 
been  found  that  these  workmen's  committees  dis- 
cover hundreds  of  small  points  of  danger  which 
arise  even  in  the  best-guarded  shops  and  which  can 
only  be  ferreted  out  by  men  who  are  on  the  job 
and  near  the  work;  fourth,  these  Inspectors  become 
"boosters  for  safety"  and  do  much  to  interest  their 
fellow-workmen  and  induce  them  to  do  their  part. 
In  several  companies  ninety-five  per  cent,  of  the 
recommendations  of  the  workmen  have  been  ac- 
cepted and  have  actually  been  carried  out.  It  goes 
without  saying  that  every  foreman  should  carefully 
inspect  his  department  day  by  day  in  order  to  elimi- 
nate weaknesses  which  arise  or  recur  from  time  to 
time. 

"Safety  Inspector  Needed 

"It  has  been  found  that  even  In  the  smallest  plants 
It  is  advisable  to  appoint  some  one  man  who  will  be 
responsible  for  looking  after  safety.     In  the  smaller 

63 


Citizens  in  Industry 


shops  this  man  may  spend  only  one  hour  a  day  but 
he  should  be  the  spokesman  and  make  It  his  busi- 
ness to  see  that  proper  reports  of  accidents  are  made, 
that  guards  which  have  been  ordered  are  installed, 
that  the  inspection  work  is  carried  on  promptly,  etc. 

"  'Boost  for  Safety'  Meetings 

"In  many  companies  foremen's  meetings  are  held 
once  a  month,  at  which  meetings  the  subject  of  safety 
is  discussed,  accidents  which  have  occurred  are  care- 
fully gone  over  and  ways  and  means  of  prevention 
are  worked  out.  These  meetings  are  invaluable  to 
enable  the  superintendents  to  keep  the  foremen  lined 
up  and  to  keep  alive  the  interest  and  enthusiasm  in 
safety  work.  Meetings  of  workmen  have  been  found 
equally  valuable.  At  these  meetings  the  whole  prob- 
lem of  accidents,  their  cause  and  prevention,  should 
be  openly  discussed,  the  officers  of  the  company 
should  squarely  face  their  responsibility  and  the 
large  part  which  the  workmen  must  do  should  be 
carefully  pointed  out. 

"Get  Your  Men  JFith  You 

"The  companies  which  have  had  the  longest  ex- 
perience in  safet)^  work  more  and  more  emphasize 
one  point,  namely,  that  only  poor  results  can  be  at- 
tained unless  the  employer  is  able  to  reach  his  men 
and  to  win  their  confidence  and  cooperation  so  that 
they  will  feel  that  he  is  doing  his  full  part  and  will 
appreciate  the  part  which  they  must  do  in  order 
to  secure  safety  for  all." 

64 


Health  and  Efficiency 


By  eternal  vigilance,  fatalities  and  injuries  are 
reduced  in  number;  the  method  of  constant  warn- 
ing, under  instructions  from  the  authorities,  bears 
good  fruit.  Night  meetings  are  held;  the  men  dis- 
cuss the  causes  of  recent  accidents  and  how  they 
might  have  been  averted;  the  stereopticon  is  used 
to  set  the  situations  accurately  and  vividly  before 
their  eyes  as  they  talk. 

The  National  Council  for  Industrial  Safety  in 
calling  its  Second  Safety  Congress  (Sept.,  19 13) 
declared  that  federal  records  show:  "Every  hour 
232  workmen  killed  or  injured;  every  15  minutes  a 
workman  killed;  every  16  seconds  a  workman  in- 
jured; every  year  2,035,000  workmen  killed  or  in- 
jured;" and  that  nearly  one-half  this  tragical  loss 
might  be  prevented.  On  their  letterhead  is  a  strong 
figure  of  Humanity  looking  at  an  advertisement  of 
an  ocean-going  vessel,  in  which  it  was  boasted  that 
this  line  excelled  in  luxury,  elegance,  speed,  grandeur 
and  magnitude;  and  the  wise  and  gentle  woman  holds 
before  them  all  the  word  "Safety."  ^ 

Great  ingenuity  and  pedagogic  skill  have  been 
shown  in  this  new  campaign  of  "safety  first."  The 
officer  of  the  Santa  Fe  Railroad  wrote:  "We  are 
just  closing  a  three  and  one-half  months'  trip  with 
a  moving-picture  and  stereopticon  lesson  which  we 
have  already  shown  to  30,000  of  our  employees,  en- 
deavoring to  point  out  by  these  pictures  defective 
conditions  and  irregular  practices  which  have  caused 
personal  injuries  in  the  past."     It  is  believed  that 

1  First  Cooperative   Safety  Congress,  Milwaukee,  1912. 

65 


citizens  in  Industry 


the  vivid  and  melodramatic  pictures  will  impress  the 
lectures  as  merely  written  or  spoken  words  could 
not  do. 

Eyes. — Defective  vision  lowers  Industrial  effi- 
ciency; sound  eyes  are  a  social  asset,  which  it  pays 
well  to  conserve.  Judging  by  examples  of  advanced 
action,  it  would  seem  that  before  long  oculists  will 
be  regularly  employed  and  paid  to  make  periodical 
inspections  of  all  employees  and  to  prevent  loss  of 
sight  by  prescribing  glasses  and  giving  Instruction 
In  hygiene  of  the  eyes.  In  a  very  large  corporation 
It  may  be  possible  to  have  the  entire  service  of  an 
oculist;  but  it  would  not  be  difficult  to  form  a  circle 
of  cooperating  firms  for  the  purpose  when  each  is 
too  small  to  afford  an  oculist  of  Its  own. 

Safeguai'ds. — A  great  corporation  announced  its 
ideal  and  purpose  to  be  this:  "Every  gear,  every 
belting,  every  set  screw,  every  wood-working  ma- 
chine, every  metal-working  machine,  spinners  In 
twine  mills,  elevator  landings,  and,  in  fact,  every 
place  where  liability  to  accident  may  possibly  exist, 
we  propose  to  surround  with  a  safeguard."  They 
employ  Inspectors  and  expend  vast  sums  of  money 
to  realize  this  ideal. 

Reporting  Injuries. — In  the  better  establishments 
It  is  a  rule  to  require  the  workmen  to  report  even 
the  slightest  accidents  at  once,  so  that  remedies  may 
be  applied  and  the  cause  of  danger  be  removed.  The 
men  are  encouraged  to  suggest  protective  devices  to 
reduce  the  number  of  accidents. 

Shop  Committees  on  Safety  and  Health, — Once 

66 


Health  and  Efficiency 


after  the  state  inspectors  had  approved  of  the  safety- 
devices  employed,  the  company  appointed  a  special 
committee  consisting  of  representatives  from  each 
department  of  the  factory,  and  within  a  year  after 
the  recommendations  of  this  committee  had  gone 
Into  effect  it  was  found  that  the  number  of  accidents 
in  proportion  to  the  number  of  employees  had  been 
reduced  more  than  73  per  cent. 

This  story  from  actual  experience  illustrates  the 
principle  insisted  on  throughout  this  discussion,  that 
industry  and  business  can  be  improved  only  by  taking 
the  operatives  into  confidence,  showing  respect  for 
their  judgment  and  giving  them  more  influence  in 
management  as  rapidly  as  they  show  capacity  and 
cooperative  spirit.  In  these  social  relations  slavery 
and  despotism  do  not  pay. 

One  railway  company,  startled  by  the  appalling 
increase  in  accidents,  in  spite  of  costly  devices  for 
preventing  them,  sought  the  counsel  and  cooperation 
of  the  employees  in  cultivating  the  "safety  habit." 
Safety  committees  were  formed  at  convenient  points 
along  the  line  and  they  were  "recruited  from  the 
masses  rather  than  from  the  classes."  It  was  an- 
nounced that  every  man  was  expected  to  consider 
himself  an  inspector  for  the  Bureau  of  Safety;  that 
if  safety  required  time,  that  time  would  be  paid  for; 
that  each  one  must  regard  it  his  personal  duty  to 
help  make  the  operation  safe;  "no  man  has  a  right 
to  take  a  chance,  for  it  too  often  happens  that  some- 
one else  takes  the  consequences." 

Fint  Aid  to  Injured  or  Sick, — In  well-managed 

67. 


Citizens  in  Industry 


shops  the  "first-aid  boxes,"  containing  rolls  of  ban- 
dages, lint,  wrappings,  stimulants,  etc.,  are  kept  in 
convenient  places,  and  the  employees  are  instructed 
in  the  use  of  them.  When  serious  accidents  fre- 
quently happen  an  emergency  hospital  very  near  the 
works  is  found  indispensable.  An  automobile  am- 
bulance is  desirable  when  the  works  are  at  a  distance 
from  the  hospitals.  In  many  hazardous  occupa- 
tions, especially  railways,  hospital  accommodations 
are  provided,  and  the  expense  met  partly  by  the 
company  and  partly  by  regular  contributions  taken 
out  of  the  wages.  This  method  will  of  course  be 
superseded  in  the  future  by  regular  accident-insur- 
ance organization. 

Large  corporations  in  the  United  States  collect 
photographs  and  models  of  devices  illustrating  their 
method  of  preventing  accident  and  disease.  These 
museums  ought  to  be  established  by  the  state  de- 
partments of  labor  in  each  great  Industrial  center.* 
Only  the  best  recent  devices  should  be  exhibited,  be- 
cause an  antiquated  model  does  harm.  It  Is  de- 
sirable to  have  expert  lecturers  In  charge  of  these 
exhibits  so  as  to  demonstrate  their  value  and  uses. 
At  times  the  machines  should  be  kept  running  to 
show  their  action  and  the  methods  of  using  the  pro- 
tective  devices.      A   museum   without   lectures    and 

^  Museums  of  Safety  are  found  in  Amsterdam,  Barcelona, 
Berlin,  Brussels,  Budapest,  Copenhagen,  Dresden,  Frankfort- 
on-Main,  Gratz,  Helsingfors,  London,  Milan,  Montreal,  Mos- 
cow, Munich,  New  York,  Paris,  Stockholm,  Vienna,  Wurz- 
burg,  Zurich. — W.  H.  Tolman. 

68 


Health  and  Efficiency 


demonstrators  is  dead  capital,  for  inanimate  objects 
are  dumb  and  they  need  the  interpretation  of  an 
intelligent  human  teacher.  Many  of  the  devices 
and  pictures  can  be  sent  from  place  to  place  when 
workmen  reside  in  smaller  towns,  in  order  to  fur- 
nish illustrations  of  lectures  and  class  studies. 


DISEASE 


The  prevention  of  disease  does  not  attract  atten- 
tion SO  early  or  so  frequently  as  "accidental  inju- 
ries," because  disease  is  insidious,  unseen,  not  spec- 
tacular, and  arises  from  obscure  causes  which  only 
trained  physicians  can  discern  and  explain.  But 
disease  is  vastly  more  important  as  a  cause  of  indus- 
trial inefficiency  than  accidents,  and  most  business 
laymen  have  yet  to  learn  this  truth. 

Here  we  offer  some  illustrations  of  the  response 
of  employers  to  the  demands  of  modern  medical 
science,  to  show  that  their  eyes  are  open  to  the  need. 

Cleanliness. — The  microscopic  vision  of  the  bac- 
teriologist and  the  uncompromising  tidiness  of  a 
good  housekeeper  are  required  to  keep  a  work-place 
clean;  for  here  esthetic  standards  and  science  hap- 
pily agree  in  their  demands.  Long  before  bacteria 
were  seen  through  lenses,  women  were  unconsciously 
at  war  with  them,  urged  by  their  esthetic  standards. 
It  is  doubtful  whether  even  a  medical  Inspector  would 
be  more  useful  In  a  tannery  or  any  dirty  business 
than  a  woman  who  knows  how  to  clean  house,  if  she 
were  given  power  to  do  her  will. 

69 


citizens  in  Industry 


The  maintenance  and  protection  of  bodily  integ- 
rity and  efficiency  depend  on  observance  of  the  prin- 
ciples of  occupational  hygiene  in  the  widest  sense  of 
the  word.^ 

The  primary  condition  of  success  in  conservation 
of  vitality  is  to  bring  the  whole  system  of  industry 
under  the  supervision  and  control  of  medical  experts 
in  shop  hygiene.  Pioneer  examples,  far  in  advance 
of  our  present  social  legislation,  are  found  in  some 
establishments  which  are  owned  by  enlightened  capi- 
talist managers  and  corporations  whose  enterprise 
and  foresight  deserve  all  praise.  Medical  service, 
with  physicians,  nurses,  pharmacy,  first-aid  appli- 
ances and  hospital,  has  been  voluntarily  introduced 
with  excellent  and  paying  results.  Such  a  service  is 
an  essential  factor  in  social  insurance  against  acci- 
dent and  sickness,  whether  this  insurance  is  intro- 
duced through  a  benefit  association  or  by  legal  re- 
quirement.    The  prompt  care  of  wounds  or  acute 

^  For  the  particulars  of  this  vast  field  of  modern  medical 
science  we  refer  to: 

R.  Abel:     Handbuch  der  praktischen  Hygiene. 

Albrecht :     Handbuch  der  Socialen  Wohlfahrt. 

W.  Ewald:     Soziale  Medizin. 

C.  H.  Harbaugh :     Causes  of  Disability. 

C.  Harrington:    Practical  Hygiene. 

Kober  and  Hanson,  and  Thompson's  works  on  Occupa- 
tional Hygiene. 

Oliver:   Dangerous  Trades,  and  Occupational  Diseases. 

Rambousek :     Occupational  Diseases. 

M.  J.  Rosenau :     Preventive  Medicine  and  Hygiene. 

Weyl,  etc, 

70 


Health  and  Efficiency 


attacks  of  pain  and  illness  may  save  life;  early 
action  multiplies  the  chances  of  successful  treat- 
ment. 

The  medical  examination  at  the  time  of  employ- 
ment, and  periodically  thereafter,  has  for  its  pri- 
mary object  protection  against  communicable  dis- 
ease and  improvement  of  energy  and  vitality.  But 
medical  inspection  may  also  be  utilized  in  the  selec- 
tion and  assignment  of  tasks.  The  physician's  pro- 
fessional advice  is  an  important  factor  in  measuring 
the  amount  of  strain  which  any  particular  workman 
can  endure.  With  the  socialization  of  preventive 
medicine  and  the  extension  of  social  insurance  to 
sickness  and  invalidity  this  medical  control  will  be- 
come a  regular  and  obligatory  factor  in  the  assign- 
ment of  tasks.  It  is  already  so  in  the  best  prison 
systems,  and  Individual  industrial  firms  have  adopted 
the  measure;  but  it  is  capable  of  vastly  greater  ex- 
tension. 

The  psychological  laboratory  ^  is  already  in  po- 
sition to  make  the  guesses  of  foreman  and  superin- 
tendents more  reliable  and  exact.  It  is  true  that  a 
"boss"  of  experience  and  skill  can  rapidly  pick  out 
in  a  crowd  the  men  who  seem  to  be  best  adapted 
to  their  particular  work.     But  many  gross  blunders 

^  Incidentally  to  his  main  work  Dr.  Heal)',  in  his  "Indi- 
vidual Delinquent,"  has  presented  methods  of  studying  per- 
sons with  the  purpose  of  discovering  what  they  can  do  best. 
His  discussion  will  be  valuable  for  industrial  tests  in  shops; 
but  the  measures  require  well-trained  directors  to  use  them 
effectively, 

71 


Citizens  in  Industr}^ 


are  made;  time,  material  and  capital  are  lost;  health 
breaks  down ;  and  the  productive  process  Is  hin- 
dered by  mistakes  which  accurate  examinations  with 
instruments  of  precision  would  reduce  in  number. 

The  whole  movement  to  furnish  v^ocational  train- 
ing and  guidance  to  youth  is  an  important  contri- 
bution in  this  direction,  and  one  which  intelligent 
employers  are  beginning  to  appreciate.  It  is  in 
the  experimental  stage,  but  already  fulfills  a  great 
part  of  its  promise.  It  involves  medical  counsel. 
Indeed  the  physical  inspection  and  training  must 
begin  in  the  schools  and  the  home,  and  at  this  point 
our  subject  runs  far  out  into  other  fields  of  investi- 
gation and  action. 

Medical  Examinations  and  Treatment  of  Em- 
ployees,  Especially  for  Tuberculosis:  An  Up-to- 
date  System  in  Actual  Operation. — The  primary 
object  of  medical  examination  of  employees  is  to 
discover  all  cases  of  tuberculosis  and  to  begin 
proper  treatment  as  early  as  possible,  and  not 
merely  to  reject  those  who  would  make  the  sick 
benefit  premiums  too  high  for  solvency  of  a  fund. 
No  sooner  is  the  physician  at  work  than  he  discov- 
ers other  diseases  which  require  prompt  treatment, 
and  as  he  passes  through  the  shops  and  writes  up 
the  occupational  biography  of  each  employee,  his 
trained  eye  detects  conditions  which  are  manifestly 
responsible  for  disease  and  must  be  corrected.  Every 
prospective  employee  is  inspected;  an  annual  inspec- 
tion is  given  to  all  the  workers;  and  all  those  found 
below  normal  are  reexamined  during  the  year.    The 

72 


Health  and  Efficiency 


physical  examinations  are  thorough;  the  blood,  urine 
and  sputum  being  subjected  to  laboratory  tests,  If 
need  is  indicated.  The  Inspections  are  directed  to 
weight,  temperature,  blood  pressure,  pulse,  general 
appearance,  and  history.  The  shop  conditions  are 
improved  by  the  Introduction  of  an  improved  ven- 
tilation system,  dust-removing  apparatus,  sanitary 
drinking  fountains,  wash-basins,  toilets  and  shower 
baths.  Not  only  the  shop  workers  but  the  office 
people  require  careful  examination  and  treatment. 
The  employees  are  readily  convinced  that  this 
method  is  for  their  own  benefit  and  they  submit 
willingly  to  the  examinations.  When  a  person  is 
found  to  have  tuberculosis  In  an  active  stage, 
he  Is  urged  to  go  to  a  sanatorium,  and  the 
expense  is  met  by  the  benefit  or  insurance  asso- 
ciation to  which  both  company  and  employees  con- 
tribute. 

The  advantages  of  the  system  Include  the  early 
discovery  of  disease  and  more  certain  cure;  the  re- 
duction of  contagion  and  therefore  of  the  number 
disabled;  the  location  of  the  causes  or  aggravating 
conditions  of  disease.  If  the  employees  felt  that  the 
arrangements  were  simply  designed  to  weed  out  the 
feeble,  they  would  not  be  cordial  toward  the  system; 
but  when  they  are  convinced  that  the  measures  are 
necessary  for  themselves  and  for  the  community, 
they  accept  It  as  reasonable. 

Not  only  tuberculosis  but  heart  disease,  nephritis 
and  diabetes  have  been  discovered,  in  cases  where 
the  afflicted  employees  were  Ignorant  of  their  dan- 

73 


Citizens  in  Industry 


ger.     Various  contagious  diseases  are  revealed  and 
the  community  protected.^ 

VARIOUS    HYGIENIC    MEASURES   IN    THE   WORK-PLACE 

Among  the  matters  which  receive  attention  with 
firms  having  modern  ideals  are:  vacuum  cleaners, 
where  floors  must  be  swept;  sanitary  spittoons,  where 
the  deplorable  tobacco  habits  of  men  make  them  un- 
happily necessary.  Barber  shops  are  under  control 
and  antiseptic  measures  are  enforced.  Waiters  in 
the  restaurant  and  dining-room  are  required  to  be 
clean  and  keep  their  dress  in  neat  condition.  Combs 
and  brushes  must  not  be  used  indiscriminately,  and 
must  be  daily  cleansed  and  sterilized.  A  towel  is 
presumably  unclean  when  once  used  or  even  exposed 
to  the  air.  Aprons  and  sleevelets  supplied  to  clerks 
and  saleswomen  save  the  dress  and  help  maintain 
freedom  from  dust  and  dirt. 

Dust  Removal. — What  the  medical  authorities 
and   shop   engineers    require   are   found   already   in 

^  Statements  of  Drs.  James  A.  Britton,  Harry  E.  Mock 
and  Theodore  B.  Sachs  (Chicago  Tuberculosis  Institute). 

Reports  of  Metropolitan  Insurance  Company's  work  for 
employees.  Reports  of  Chicago  Tuberculosis  Institute,  1912, 
and  Bulletin,  The  Survey,  Oct.  21,  1911,  Apr.  20,  1912,  June 
I,  1913.  Transactions  of  the  Eighth  Annual  Meeting  (1912) 
of  the  National  Association  for  the  Study  and  Prevention  of 
Tuberculosis. 

Transactions  of  the  Fifteenth  International  Congress  of 
Hygiene  and  Demography  (1912). 

Illinois  Medical  Journal,  Feb.,  1913. 

74 


Health  and  Efficiency 


those  establishments  which  lead  the  march  of  prog- 
ress. No  way  has  yet  been  found  to  remove  all 
dust  in  certain  processes.  In  such  situations  respi- 
rators are  furnished  and  the  exposed  men  are  re- 
quired to  use  them.  Patterns  are  selected  which  give 
as  little  annoyance  and  distress  as  possible,  so  that 
men  will  not  be  tempted  overmuch  to  throw  them 
aside  and  take  the  risk. 

Drinking  Water. — ^We  may  draw  upon  our  stock 
of  illustrations  for  hints  as  to  supply  of  water. 
When  scientific  principles  are  followed,  the  drink- 
ing water  is  tested  chemically  and  bacteriologically 
by  experts  from  time  to  time;  either  a  pure  source 
Is  found  or  the  water  is  distilled  or  boiled  and 
cooled,  or  otherwise  made  safe  and  palatable;  drink- 
ing fountains  are  so  constructed  as  to  avoid  com- 
munication of  disease;  water  bottles  and  their  stop- 
pers are  carefully  sterilized;  and  no  ice  comes  in 
contact  with  the  drinking  water. 

Exercise. — Nothing  is  more  certain  than  that  un- 
broken labor  in  shops  will  gradually  stiffen  or  wear 
out  the  members  of  the  office  force.  In  cities  it  is 
difficult  to  find  space  for  outdoor  exercise  or  gym- 
nasium facilities.  The  constantly  shifting  and  scat- 
tered employees  cannot  form  an  association  to  own 
property,  even  if  they  could  command  the  means. 
Under  such  conditions  the  intervention  of  the  em- 
ploying firm  may  be  advisable,  if  not  indispensable. 
In  response  to  this  demand  of  a  hygienic  standard, 
some  firms  have  supplied  grounds,  buildings,  gym- 
nasiums and  apparatus  for  employees.     They  have 

75 


Citizens  in  Industry 


even  provided  for  horseback  riding,  country  clubs, 
golf  links,  gun  clubs  and  hunting,  and  playgrounds; 
and  they  have  defended  themselves  against  the 
charge  of  sentimentality  by  affirming  that  it  all 
"pays." 

Dining-rooms. — Our  model  employers  no  longer 
Ignore  the  demand  for  a  decent  and  clean  place  to 
eat.  Attractive  and  tidy  service  enhances  the  value 
of  food.  When  employees  go  home  for  luncheon 
this  Is  not  necessary,  and  luncheon  stations  for  sim- 
ple refreshments  are  sufficient.  But  where  the  dis- 
tance from  the  work-place  to  the  homes  Is  great 
the  journey  both  ways  for  a  tired  person  Is  exhaust- 
ing. 

It  Is  pitiful  to  see  men  at  the  noon-hour  eating 
their  cold  food  out  of  a  tin  pail,  with  dirty  fingers, 
In  the  very  place  where  they  work,  the  air  full  of 
dust,  perhaps  of  poison.  And  it  is  refreshing  to  see 
the  tired  work-people  enter  a  well-ordered  dining- 
room,  after  using  the  lavatory  and  clean  towel,  and 
sit  down  to  a  tidy  table,  with  a  napkin,  to  eat  food 
which  comes  fresh  from  the  model  kitchen  and  costs 
no  more  than  if  made  with  pain  and  toil  by  the  wife 
at  home.  Certainly  the  people  go  back  to  the  bench 
or  lathe  with  better  heart  and  force,  with  more  self- 
respect  and  with  kindlier  feeling  to  all  the  world. 
The  opportunity  for  relaxation  and  social  inter- 
course is  appreciated  and  valuable,  and  the  food  is 
digested  and  assimilated. 

While  the  employees  are  at  their  noon-day  meal, 
the  windows  of  the  workrooms  may  be  opened  so 

76 


Health  and  Efficiency 


that  fresh  air  pours  through,  and  the  conditions  are 
made  more  favorable  for  exertion.  Experience  has 
revealed  the  importance  of  many  details  where  food 
is  served:  a  cold-storage  plant  for  preservation  of 
materials,  inspection  and  testing  of  foodstuffs;  mod- 
ern machinery  in  the  kitchen  for  sanitary  handling 
of  food;  incineration  of  garbage  and  refuse.  There 
are  some  advantages  in  very  large  establishments  of 
having  not  only  a  service  dining-room  with  its  slightly 
higher  prices  for  those  who  desire  its  comforts,  but 
also  a  luncheon  stand  where  hot  food  is  served,  or 
where  the  lunch  brought  from  home  may  be  eaten 
with  some  hot  drink,  and  a  special  counter  for  the 
men  who  prefer  celerity  to  refinement.  When  the 
firm  has  a  garden  the  vegetables  are  more  likely  to 
be  fresh. 

The  cost  of  food  is  kept  low  because  no  profit  is 
sought;  the  materials  are  purchased  in  large  quan- 
tities at  wholesale  rates;  and  the  cooking  is  done 
with  minimum  expense  for  fuel  and  personnel.  Some 
reports  show  that  the  noon  lunch  is  furnished  with- 
out pay  in  order  to  increase  the  working  capacity 
of  persons  who  have  low  wages  and  are  in  danger 
of  saving  on  food  to  the  detriment  of  energy.  The 
officers  and  heads  of  departments  may  require  sepa- 
rate accommodations. 

Care  of  Clothing. — In  the  work-place  suitable  gar- 
ments must  be  worn;  often  coarse  and  rough.  The 
outer  clothing  comes  in  contact  with  dust,  oil,  rust, 
and  becomes  torn,  untidy  and  dirty.  The  undercloth- 
ing is  saturated  with  sweat.     It  is  a  hardship  and 

77 


citizens  in  Industry 

often  a  danger  to  health  to  be  obliged  to  wear  this 
clothing  through  the  streets  a  long  distance  to  the 
home.  A  man  loses  self-respect  in  such  a  garb  and 
the  odor  is  offensive  in  the  crowded  and  close  street 
cars.  In  shops  with  high  standards  every  employee 
has  a  locker  in  which  the  street  clothing  is  placed 
during  working  hours.  The  locker  is  in  a  place  pro- 
tected from  smoke,  dust  and  grime;  it  is  well  venti- 
lated and  secure  against  theft,  and  is  kept  scrupu- 
lously clean  by  factory  inspection.  The  work  gar- 
ments should  also  be  frequently  washed  at  the  ex- 
pense of  the  company;  this  is  a  necessary  factor  in 
shop  hygiene. 

Toilet-rooms  are  found  on  every  floor  in  stand- 
ardized establishments;  they  are  kept  clean  and  In 
decent  condition  by  constant  inspection;  water  is  sup- 
plied for  the  hands,  and  paper  napkins  or  towels  are 
supplied  to  avoid  the  danger  of  Infection  which  Is 
always  present  In  such  places.  The  toilet-rooms  for 
women  and  girls  must  be  separate  from  those  of 
men  and  the  hall  leading  to  them  should  be  separate, 
to  avoid  meeting. 

lAghting. — In  the  standardized  work-place  the 
architect's  skill  is  taxed  to  supply  the  greatest  amount 
of  natural  light.  Some  establishments  boast  of  hav- 
ing devoted  75  per  cent,  to  90  per  cent,  of  the  wall 
space  to  windows.  Various  schemes  are  mentioned 
for  supplying  abundant  light  from  the  roof  which 
is  constructed  with  this  purpose  In  mind.  When 
practicable,  especially  when  the  operation  is  delicate 
and  taxes  the  eyes,  the  benches  are  at  right  angles 

78 


Health  and  Efficiency 

to  the  windows  so  that  the  illumination  is  at  the 
side  and  the  rays  do  not  strike  the  eye  itself  directly 
but  rather  the  object.  Where  artificial  light  is  nec- 
essary the  electric  lamps  are  shaded  and  the  rays 
are  focused  as  far  as  possible  on  the  points  where 
light  is  most  needed. 

Distance  of  the  bench  from  the  window  must  be 
considered,  because  the  degree  of  illumination  rap- 
idly diminishes  with  each  foot  traversed  by  light 
beams.  It  is  often  forgotten  that  while  good  win- 
dow-glass is  transparent  the  dirt  which  gathers  on 
its  surface  arrests  the  rays;  regular  washing  and 
polishing  of  window-panes  is  part  of  the  best  sys- 
tems. 

Ventilation. — In  shops  where  wood  dust  is  created 
in  the  process  it  must  be  constantly  removed  because 
it  is  in  the  way  of  the  workers,  increases  the  dan- 
ger from  fire,  lacerates  the  mucous  membrane  of  the 
nose  and  throat  and  irritates  the  lungs.  The  dust 
and  shavings  are  removed  by  suction  apparatus  with 
openings  near  the  point  where  the  particles  of  wood 
are  broken  off  by  the  machine.  This  operation  sets 
up  a  circulation  of  air  throughout  the  work-place,  be- 
cause for  every  cubic  foot  of  air  removed  an  equal 
volume  must  enter.  So  a  double  purpose  is  served. 
In  foundries,  core-rooms,  polishing-rooms,  work- 
places where  irritating  gases  and  vapors  are  pro- 
duced or  steam  arises,  a  system  of  exhaust  pipes 
purifies  the  atmosphere,  improves  the  vision  and  for- 
tifies the  health. 

Change  of  Occupations. — Thoughtful  employers 
79 


Citizens  in  Industry 


have  occasionally  noticed  that  a  person  inclined  to 
tuberculosis  could  be  saved  if  he  were  taken  from 
the  shop  and  given  light  occupation  in  a  garden  or  in 
care  of  horses.  It  is  especially  necessary  to  watch 
over  men  when  they  are  recovering  from  a  wasting 
disease  like  t}'phoid  fever.  Many  a  man  has  lost 
all  the  benefit  of  hospital  treatment  by  returning  to 
labor  before  convalescence  was  complete  and  the 
tissues  were  restored  by  rest,  food  and  sleep. 

Alcoholism. — In  the  present  state  of  public  igno- 
rance of  the  real  facts  about  alcohol,  while  even 
some  physicians  cling  to  lax  and  antiquated  notions 
on  the  subject,  the  workmen  naturally  share  ancient 
superstitions  as  to  the  value  of  intoxicants.  They 
believe  that  beer  will  quench  thirst,  stimulate  the 
nerves,  strengthen  the  muscles,  enable  them  to  endure 
heat  in  summer  and  cold  in  winter,  keep  them  awake 
in  the  daytime,  and  put  them  to  sleep  at  night.  The 
brewers,  wine  merchants,  distillers  and  dram  sellers 
spend  vast  sums  of  money  in  corrupting  the  judgment 
of  men  for  their  mercenary  ends,  until  some  of  them 
come  to  believe  in  their  own  contradictory  theory. 
In  this  situation  the  temperance  movement  must  be 
pushed  by  employers  with  tact  and  wisdom,  because 
the  men  are  sensitive  to  dictation  on  a  subject  which 
seems  to  them  a  purely  private  affair. 

Indirectly  a  great  deal  can  be  done.  The  craving 
for  alcohol  is  allayed  by  recreations  which  exalt  the 
feelings  without  poison  or  reaction.  Even  watching 
rapid  ball  games  enables  a  man  to  take  part  in  the 
sport  vicariously,  so  that  he  shares  through  sympa- 

80 


Health  and  Efficiency 


thy  the  excitement  of  the  participants.  When  the 
daily  work  is  exhausting  this  proxy  sport  may  be  ad- 
visable. A  bountiful  and  convenient  supply  of  pure 
drinking  water,  with  individual  cups  to  prevent  in- 
fection at  the  lips,  will  in  some  measure  reduce  the 
demand  for  expensive  and  depressing  beer.  Where 
there  is  a  need  of  nourishment  at  certain  hours,  coffee 
and  milk  stations  provide  wholesome  substitutes  for 
the  treacherous  and  deceptive  alcoholic  beverages. 
The  director  of  welfare  work  on  an  important  rail- 
way line  claims  that  he  reduced  the  consumption  of 
alcohol  by  selling  sugar  and  chocolate  in  a  variety  of 
attractive  forms.  He  believed  that  if  a  man  would 
eat  enough  candy  to  supply  heat  and  force  he  would 
not  yearn  for  fire-water.  Circulars  and  posters  giv- 
ing information  as  to  the  effects  of  alcoholic  bev- 
erages can  be  used  with  great  advantage  in  and 
near  work-places. 

Tuberculosis. — Tuberculosis  is  not  inherited;  is 
communicable,  curable  and  preventable;  but  the  ap- 
propriate measures  of  prevention  must  be  pushed 
with  energy  and  intelligence  in  a  standard  shop.  All 
employees  are  inspected  by  a  physician,  and  the  rec- 
ommendations of  the  medical  staff  are  carried  out, 
either  in  sanitariums  or  at  home.  It  is  not  every 
corporation  which  can  afford  by  itself  to  provide  a 
sanitarium  in  the  mountains  for  its  sick  employees,  an 
institution  described  as  one  which  "embodies  all  mod- 
ern ideas  and  improvements  approved  by  experts. 
.  .  .  In  arrangement,  the  wards  combine  the  com- 
forts, the  independence  and  the  homelike  attractive- 


Citizens  in  Industry 

ness  of  the  cottage,  with  the  grouping  and  economies 
of  the  shack  system.  7'he  construction  is  fire- 
proof throughout,  and  the  approach  up  the  moun- 
tain for  two  miles  is  over  a  finely  macadamized 
road." 

Instruction  in  Hygiene. — Every  year  a  new  throng 
of  young  people  and  immigrants  pours  into  the  great 
mills,  factories  and  mercantile  houses,  with  all  the 
heedlessness  of  youth  and  ignorance.  Many  of  them 
never  learned  how  to  take  care  of  their  bodies. 
When  parents  and  schools  have  failed,  then  em- 
ployers find  a  dut}',  and  there  are  numerous  in- 
stances where  they  have  called  in  medical  men 
to  lecture  on  personal  hygiene:  care  of  eyes,  ears, 
nose,  lungs  and  all  organs.  It  is  not  enough 
to  provide  safety  devices;  the  workmen  must  be 
taught  how  to  use  them  and  the  reasons  for  their 
use. 

ShadwelP  describes  the  magnificent  installation  of 
down-draft  tubes  connected  with  forges  which  carry 
away  smoke  and  leave  the  atmosphere  perfectly 
clear.  He  tells  how  the  workers  looked  upon  these 
contrivances  with  disdain.  "We  ain't  accustomed  to 
these  'ere  fires."  The  inertia  of  habit,  custom  and 
ignorance  must  be  overcome  by  tactful  and  persist- 
ent education.  In  one  place  in  England  he  found 
extensive  lavatories.  A  few  seconds  after  the  clos- 
ing bell  rang,  "the  floor  below  was  already  black 
with  the  hurrying  crowds  rushing  for  the  door  and 
pulling  on  their  coats  as  they  went.  In  a  moment 
^  Industrial  Efficiency,  li,  56. 

82 


Health  and  Efficiency 


they  were  gone.  In  one  of  the  lavatories  we  found 
a  solitary  workman  washing  himself  with  great  rel- 
ish. That  was  all  out  of  3,000  or  4,000."  He  adds: 
"English  workmen  love  to  be  dirty  all  the  week; 
they  seem  to  take  a  pride  in  presenting  a  ruffianly 
appearance.  It  is  the  mark  of  their  calling,  the  hon- 
orable badge  of  toil,  the  privilege  of  the  'horny- 
handed!'  "  Men  cannot  be  treated  like  machines; 
they  must  be  consulted;  not  even  health,  comfort 
and  decency  can  be  forced  on  them.  The  teacher  is 
as  necessary  as  the  boss;  and  when  fashion  Is  ar- 
rayed against  civilization  the  teacher's  task  Is  not 
a  sinecure. 

Instruction. — Some  topics  of  lectures,  bulletins, 
posters  and  Illustrations,  gathered  from  various 
sources,  may  be  mentioned:  general  principles  of  per- 
sonal and  public  hygiene,  digestion,  circulation,  res- 
piration, narcotics,  alcohol,  housing  conditions,  mu- 
nicipal house-cleaning,  tuberculosis,  venereal  dis- 
eases, flies  and  other  Insect  carriers  of  germs. 

Rest. — Nothing  Is  gained  by  too  prolonged  effort; 
periodical  daily,  weekly,  and  yearly  rest,  and  for 
women  monthly  rest,  is  a  condition  of  maximum  out- 
put. The  annual  vacation  is  a  necessity  for  opera- 
tives In  the  shop  and  for  clerks  in  offices.  The  pe- 
riod may  be  prolonged  somewhat  for  regularity  and 
punctuality  throughout  the  year  or  shortened  to  re- 
buke defects  In  these  requirements  of  Industry. 
There  are  firms  who  find  It  possible  and  profitable 
to  continue  wages  during  the  vacation.  Employees 
who  have  been  long  In  the  service  and  begin  to  feel 

83 


Citizens  in  Industry 


the  creaking  of  joints  and  weight  of  shoulders  are 
occasionally  indulged  in  some  extra  days  of  release 
from  strain.^ 

Overtime. — The  occasions  for  prolonging  the  or- 
dinary hours  of  labor  are:  the  necessity  of  repairing 
machinery  during  the  night  or  on  Sunday,  or  of  han- 
dling perishable  goods  in  transit.  It  is  generally 
agreed  that  overtime  should  be  restricted  to  the  ac- 
tually necessary;  that  It  should  be  paid  at  higher 
rates,  since  It  costs  the  laborer  relativ-ely  greater 
strain  and  Injury;  that  definite  holidays  in  slack  sea- 
sons should  compensate  for  the  extra  labor.  In 
all  matters  relating  to  overtime,  medical  Inspections 
would  help  establish  standards  on  a  scientific  basis. 
One  English  firm  expressed  this  conviction  as  a  re- 
sult of  shortening  the  hours  of  labor:  "We  believe 
that  increased  intelligence  and  efficiency  follow  upon 
limiting  the  hours  of  labor  to  eight,  because  oppor- 
tunities are  thus  afforded  for  intellectual  and  physi- 
cal development  and  recreation.     We  believe  that 

^"Vacations:  Switzerland."  Soziale  Praxis,  Feb.  27,  1913, 
xxii,  653.  In  1910,  of  7,900  factories,  949,  about  }i,  {12  per 
cent.),  allowed  vacations  to  workers,  foremen,  etc.  Of 
328,000  employees  of  factories,  26,158,  about  1/12  (8  per 
cent.),  were  allowed  vacations.  2,611  of  them  (10  per  cent.) 
were  given  3  days  or  less;  12,255  (47  P^^  cent.)  3  days  to 
one  week;  2,027  (8  per  cent.)  i  week  to  2  weeks;  269  (i 
per  cent.)  over  2  weeks;  for  8,996  (34  per  cent.),  informa- 
tion lacking.  Amount  of  vacation  wages,  191 0 — 782,857  Frk. 
791  workers  (in  38  plants)  were  given  only  part  wages. 
Ninety-six  per  cent,  of  all  plants  gave  full  wages,  an  excep- 
tionally favorable  showing 

84 


Health  and  Efficiency 


the  proper  employment  of  such  opportunities  tends 
to  elevate  the  general  tone  of  life,  to  improve  the 
health,  and  to  cultivate  a  taste  for  good  society,  and 
precludes  that  excessive  fatigue  which  demands  un- 
natural stimulant  and  vicious  pleasures."  ^ 

Continuous  Process. — In  some  industries,  as  smelt- 
ing ores,  manufacture  of  alkali  and  soda,  etc.,  it  is 
not  possible  to  shut  down  the  operation.  There  is  a 
choice  between  the  twelve-hour  shift  and  the  eight- 
hour  shift,  and  the  latter,  with  its  physical  and  moral 
advantages,  has  been  introduced  without  loss  in  cer- 
tain situations.- 

Shorter  Day. — Fortunately  this  competition  of 
employers  in  the  field  of  quasi-philanthropy  offers  the 
world  fruits  of  experimentation  which  has  an  almost 
scientific  character  and  value.  Naturally  there  is 
a  wide  difference  of  opinion  on  both  sides  of  the  At- 
lantic in  regard  to  the  practicability  of  a  shorter  day, 
as  of  eight  hours  or  less.  Much  depends  on  the 
technique  of  the  trade  and  the  margin  of  profit  in  the 
business.^  It  seems  to  have  been  proved  that  the 
hours  of  labor  may,  under  certain  conditions,  be 
shortened  without  diminishing  the  quantity  or  qual- 
ity of  the  product  or  the  rate  of  wages.  But  rash 
generalizations  from  particular  industries  to  all  in- 

^  Burroughs,  Wellcome  and  Co.,  London. 

2  Webb  and  Cox :     The  Eight  Hours  Day,  256  ff. 

^  Webb  and  Cox:  Describes  a  considerable  number  of  ex- 
periments in  Europe. 

F.  L  McVey:  "Social  Effects  of  the  Eight-Hour  Day." 
American  Journal  of  Sociology,  Jan.,  1903,  viii,  521-530. 

85 


Citizens  in  Industry 


dustrles  do  not  help  solve  the  problem.  If  Increased 
intensity,  speed  and  accuracy  can  be  evoked,  there 
may  be  actual  profit  in  shortening  the  hours.  If  it 
can  be  shown  that  men  break  down  with  long  hours, 
a  legal  way  must  be  found  to  give  rest  even  with  in- 
creased cost;  the  consumers  being  required  to  pay 
the  increase. 

Among  the  considerations  which  usually  deter- 
mine whether  the  shorter  day  is  practicable  is  com- 
petition with  firms  which  work  a  longer  time.  When 
the  product  is  diminished  the  loss  may  be  too  great 
to  permit  the  change.  Either  common  agreement, 
pressure  of  trade  unions  or  a  general  law  w^ill  re- 
move this  obstacle  from  competition.  The  individ- 
ual employer's  power  is  limited. 

Fixing  the  hours  of  labor  is  not  absolutely  within 
the  power  and  range  of  responsibility  of  individual 
employers  or  even  of  powerful  corporations.  Com- 
petition, actual  or  potential,  must  be  considered; 
not  only  competition  within  the  national  territory 
but  also  between  peoples.  Only  when  profitable  con- 
duct of  a  business  is  consistent  with  conditions  of  the 
trade  would  legal  intervention  be  safe.  In  some 
circumstances  the  shortening  of  hours  so  increases  ef- 
ficiency of  labor  that  the  product  is  larger;  but  this 
is  not  always  true,  and  the  process  of  abbreviating 
the  day  of  toil  cannot  be  carried  on  indefinitely.  We 
shall  never  come  to  a  zero  day,  and  if  honest  work 
is  wholesome  the  race  would  suffer  from  entire  ab- 
sence of  strain  and  toil.  The  whole  question  is  one 
of  honest  and  competent  experimentation,  and  dur- 

86 


Health  and  Efficiency 


ing  the  trial  outsiders  should  form  judgments  with 
extreme  caution. 

A  committee  of  stockholders  of  the  United  States 
Steel  Corporation,  which  recommended  that  steps 
be  taken  to  alleviate  the  trying  conditions  in  its 
mills  in  this  fashion,  had  this  to  say:  "We  are  of  the 
opinion  that  a  twelve-hour  day  of  labor,  followed 
continuously  by  any  group  of  men  for  any  consid- 
erable number  of  years,  means  a  decreasing  of  the 
efficiency  and  lessening  of  the  vigor  and  virility  of 
such  men.  The  question  should  be  considered  from 
a  social  as  well  as  a  physical  point  of  view.  When 
it  is  remembered  that  twelve  hours  a  day  to  the  man 
in  the  mills  means  approximately  thirteen  hours 
away  from  his  home  and  family — not  for  one  day, 
but  for  all  working  days — it  leaves  but  scant  time 
for  self-improvement,  for  companionship  with  his 
family,  for  recreation  and  leisure. 

"That  steps  should  be  taken  now  that  shall  have 
for  their  purpose  and  end  a  reasonable  and  just  ar- 
rangement to  all  concerned  of  the  problem  involved 
in  this  question — that  of  reducing  the  long  hours  of 
labor — we  would  respectfully  recommend  to  the  in- 
telligent and  thoughtful  consideration  of  the  proper 
officers  of  the  Corporation.  At  a  meeting  of  the 
Corporation,  the  finance  committee  objected  because 
of  the  practical  difficulties  of  putting  the  eight-hour 
plan  in  operation.  Nobody  denies  that  there  are 
difficulties  in  the  way.  But  the  experiment — if  such 
it  still  Is — has  been  tried  with  success.  It  is  not  to 
be  forgotten,  for  instance,  that  the  Commonwealth 

87 


Citizens  in  Industry 


Steel  Company  of  Granite  City,  IHlnoIs,  divided  the 
twenty-four  hours  of  its  working  day  in  its  open- 
hearth  furnaces  into  three  instead  of  two  parts; 
and  the  Company  has  fully  recouped  itself  through 
an  increased  output  for  the  increased  item  of 
wages. 

"Abroad,  also,  it  has  been  proved  that,  in  some  oc- 
cupations, added  efficiency  gained  through  the  short 
hours  more  than  offsets  the  extra  cost.  John  Hodge 
tells  in  The  Survey  of  a  concern  in  Britain  v/hich 
made  the  change.  The  higher  paid  workmen  not 
only  voluntarily  divided  their  earnings,  based  on  the 
tonnage  of  twenty-four  hours,  by  three  instead  of  by 
two,  but  gave  a  percentage  from  their  earnings  to 
make  the  wages  of  gas-producer  men  and  charge 
wheelers  the  same  for  eight  as  for  twelve  hours. 
The  firm  gave  the  tonnage  men  a  bonus  on  any  in- 
creased output.  The  success  of  the  eight-hour  shift 
is  emphasized  by  the  fact  that  the  bonus  has  more 
than  recouped  the  men  for  making  up  any  possible 
loss  of  wages  for  the  lower  paid  men. 

"The  United  States  Bureau  of  Labor  has  estimated 
after  thoughtful  study  that  changing  from  twelve 
to  eight  hours  In  this  continuous  Industry,  even 
though  the  same  wages  were  paid  for  the  fewer 
hours,  would  involve  an  added  cost  in  the  production 
of  a  ton  of  pig  iron  of  only  2.6  per  cent.,  while  the 
cost  of  producing  the  principal  products  of  the  steel 
and  rolling  mills  would  be  increased  only  6  per  cent. 
This  estimate  considers  no  increase  in  efficiency 
contingent  upon  shorter  hours.     There  seems  to  be 


Health  and  Efficiency 


no   well-founded   reason  why  this   humane   change 
should  not  be  made." 

A  general  statement  like  the  following  cannot  be 
accepted  without  caution  and  consideration  of  cir- 
cumstances: *'The  universal  testimony  of  manufac- 
turing countries  tends  to  prove  that  the  regulation 
of  the  working  day  acts  favorably  upon  output. 
Production  is  not  only  increased,  but  improved  In 
quality."  ^ 

Comfort. — Recreation  rooms  are  provided  for 
men,  women  and  young  people,  with  the  purpose 
of  restoring  energy  of  muscle  and  brain.  In  Japan, 
halls  in  connection  with  factories  provide  for  all  sorts 
of  desirable  entertainments,  including  dramatic  per- 
formances. 

Rest-rooms  for  women  are  hygienically  desirable; 
and  their  use  should  be  permitted  without  question- 
ing.    A  woman  should  be  in  charge. 

Bathing  facilities  are  sometimes  provided  by  the 
company  voluntarily;  under  advanced  legislation 
they  are  required.  A  wise  and  humane  employer 
will  always  be  able,  with  some  thought,  to  do  better 
than  any  law  will  compel. 

A  laundry  for  women's  aprons,  janitor's  suits, 
towels,  linen,  etc..  Is  convenient  and  often  economi- 
cal. Aprons  and  sleevelets  may  well  be  supplied 
gratis  when  the  work  requires  dainty  touch  and  ha- 
bitual tidiness  in  handling  fine  goods  or  delicate 
wares. 

Alpaca  coats  for  office  employees  in  hot  weather 

'^  Brandeis :    Women  in  Industry. 

89 


Citizens  in  Industry 


not  only  improve  appearances,  but  conserve  energy. 

Elevator  service  economizes  strength  which  would 
be  used  up  in  climbing  stairs.  Bicycle  sheds,  with 
compressed  air  tanks  for  inflating  tires,  are  some- 
times provided  where  these  useful  means  of  locomo- 
tion are  popular. 

Esthetic  Surroundings. — Gardens,  flowers,  tress, 
arbors,  walks,  minister  not  only  to  the  esthetic  de- 
sires, but  have  a  positive  value  in  relation  to  health, 
buoyancy  of  spirits,  cheerfulness,  contentment  in  a 
place. 

When  a  circus  comes  to  town  an  extra  holiday 
may  be  given  without  serious  financial  loss;  for  clean 
recreation  is  a  hygienic  measure. 

The  serving  of  meals  is  a  vital  matter  from  the 
standpoint  of  health  and  cultivated  manners.  Ex- 
cellent models  of  dining-halls  and  restaurants  reveal 
the  taste  and  character  of  the  directors.  Too  gen- 
erally the  workmen  are  left  to  find  a  place  to  devour 
their  food;  under  a  dust)'  bridge,  on  the  curbstone  by 
the  hot  paved  highway,  in  the  disorder  of  a  scrap- 
iron  heap,  in  the  shop  itself  with  its  grime  and  mo- 
notony, sometimes  with  poison  and  filth  everywhere. 

Sports  and  Games. — Among  the  measures  actu- 
ally in  use  in  one  or  many  establishments  these  ex- 
amples may  be  cited: 

Country  Club. — Employers  and  ofl^ce  people  find 
that  a  few  hours  at  golf  or  other  sports  in  the  coun- 
try restore  energy,  steadiness  of  nerves  and  endur- 
ance. It  has  been  found  possible  by  the  gift  of  the 
company  or  by  subsidies  to  associations  of  employ- 

90 


Health  and  Efficiency 


ees  to  provide  playgrounds  and  restful  club-houses 
outside  the  cities  for  large  numbers  of  wage-earners. 

Baseball  teams  of  employees  are  easily  organ- 
ized, with  match  games  between  different  establish- 
ments, to  heighten  the  zest  of  the  sports  by  emula- 
tion. Tennis  tournaments  are  the  climax  of  long 
practice  during  the  season. 

Baths  and  change  of  clothing  in  suitable  dressing- 
rooms  provided  with  lockers  form  an  essential  part 
of  this  program. 

Gymnastic  exercises  are  regarded  in  some  estab- 
lishments as  so  necessary  to  maximum  working  abil- 
ity that  they  are  obligatory  on  all  employees  under 
eighteen  years  of  age.  Notable  improvement  in 
strength  and  endurance  is  reported  as  a  result  of 
systematic,  carefully  directed  gymnastic  exercises. 
President  Wilson's  recommendation  of  military  ex- 
ercises may  be  seriously  considered  from  the  hygienic 
and  patriotic  points  of  view. 

A  first-class  business  man,  if  he  does  undertake  to 
do  a  thing,  likes  to  have  it  complete,  the  best  of 
its  kind.  A  gymnasium  under  these  conditions  has 
all  the  mechanical  apparatus  advised  by  experts, 
even  to  the  Swedish  movement  and  vibratory  ma- 
chines, and  competent  physical  directors  to  see  that 
the  exercises  are  adapted  to  individual  needs. 

The  Protection  of  Girls  and  Women. — It  is  well 
known  that  the  finer  nervous  organization  of  women, 
the  delicacy  and  tenderness  of  wife  and  mother,  the 
intuition  of  moral  discernment,  the  deep  racial  in- 
stincts which  preserve  the  national  vigor,  are  quali- 

91 


Citizens  in  Industry 


ties  which  go  with  the  peculiar  constitution  of  wom- 
en; and  these  precious  quahties  cannot  be  suppressed 
for  economic  reasons  without  permanent  and  irrep- 
arable loss  to  the  character  of  the  nation.  In  pro- 
tecting girls  and  women  against  exploitation  and 
coarseness  of  fiber  we  are  fighting  for  all  humanity 
in  ages  yet  to  come. 

Mr.  Brandeis,  who  has  devoted  splendid  legal 
ability  to  this  great  cause,  starts  with  this 
plea  :  ^ 

"Besides  these  anatomical  and  physiological  dif- 
ferences, physicians  are  agreed  that  women  are  fun- 
damentally weaker  than  men  in  all  that  makes  for 
endurance;  in  muscular  strength,  in  nervous  energy, 
in  the  powers  of  persistent  attention  and  applica- 
tion. Overwork,  therefore,  which  strains  endurance 
to  the  utmost,  is  more  disastrous  to  the  health  of 
women  than  of  men,  and  entails  upon  them  more 
lasting  injury. 

"The  fatigue  which  follows  long  hours  of  labor 
becomes  chronic  and  results  in  general  deterioration 
of  health.  Often  ignored,  since  it  does  not  result 
in  immediate  disease,  this  weakness  and  anemia  un- 
dermine the  whole  system;  it  destroys  the  nervous 
energy^  most  necessary  for  steady  work,  and  effectu- 
ally predisposes  to  other  illnesses.  The  long  hours 
of  standing,  which  are  required  in  many  industries, 
are  universally  denounced  by  physicians  as  the  cause 
of  pelvic  disorders.^ 

^Brandeis:     Women  in  Industry,  p.   i8. 
"^  Ibid.,  p.  28.    Goldmark:    "Fatigue." 

92 


Health  and  Efficiency 


"The  need  of  protecting  the  health  of  working 
women  by  hmiting  their  working  hours  is  empha- 
sized by  statistics  of  the  relative  morbidity  of  men 
and  women.  In  all  countries  where  such  statistics 
have  been  kept  by  sickness-insurance  societies,  the 
morbidity  of  women  has  been  found  to  be  higher  than 
that  of  men."  ^ 

"The  morbidity  of  women,  measured  by  the  num- 
ber of  days  lost  through  illness,  is  greater  than  that 
of  men.  That  is,  women  suffer  from  illness  of 
longer  average  duration  than  men  do,  and  conse- 
quently are  more  disastrously  affected  by  exhaustion 
from  overlong  working  hours. ^ 

"Women  suffering  from  minor  illnesses  continue 
at  work  more  commonly  than  men.  That  is,  women 
have  fewer  illnesses  involving  complete  loss  of  earn- 
ing capacity,  more  illnesses  during  which  they  con- 
tinue to  remain  at  some  form  of  work.  Hence  ex- 
cessive hours  of  labor  are  doubly  injurious  to  them, 
because  often  performed  when  health  is  already  im- 
paired.^ 

"The  evil  effect  of  overwork  before,  as  well  as 
after,  marriage  upon  childbirth  Is  marked  and  disas- 
trous. 

"Accidents  to  working  women  occur  most  fre- 
quently at  the  close  of  the  day,  or  after  a  long  pe- 
riod of  uninterrupted  work.  The  coincidence  of  cas- 
ualties and  fatigue  due  to  long  hours  is  thus  made 
manifest. 

^  Brandeis:    The  Ten  Hour  Law  for  Women  (111.),  p.  35. 
2  Ibid.,  p.  40.  3  j{}icl,^  p.  46. 

93 


Citizens  in  Industry 


"The  effect  of  overwork  on  morals  is  closely  re- 
lated to  the  injury  to  health.  Laxity  of  moral  fiber 
follows  physical  debility.  Where  the  working  day 
is  so  long  that  no  time  whatever  is  left  for  a  mini- 
mum of  leisure  or  home  life,  relief  from  the  strain 
of  work  is  sought  in  alcoholic  stimulants  and  other 
excesses. 

"The  experience  of  manufacturing  countries  has 
illustrated  the  evil  effect  of  overwork  upon  the  gen- 
eral welfare.  Deterioration  of  any  large  portion 
of  the  population  inevitably  lowers  the  entire  com- 
munity physically,  mentally,  and  morally.  When  the 
health  of  women  has  been  injured  by  long  hours,  not 
only  is  the  working  efficiency  of  the  community  im- 
paired, but  the  deterioration  is  handed  down  to  suc- 
ceeding generations.  Infant  mortality  rises,  while 
the  children  of  married  working  women,  who  sur- 
vive, are  injured  by  inevitable  neglect.  The  over- 
work of  future  mothers  thus  indirectly  attacks  the 
welfare  of  the  nation. 

"This  needed  protection  to  women  can  be  afforded 
only  through  shortening  the  hours  of  labor.  A  de- 
crease of  the  intensity  of  exertion  is  not  feasible. 
[This  statement  requires  modification,  for  strain  can 
be  reduced  in  several  ways  in  some  industries.] 

"Experience  shows  how  the  demands  of  customers 
yield  to  the  requirements  of  a  fixed  working  day. 
When  customers  are  obliged  to  place  orders  suffi- 
ciently in  advance  to  enable  them  to  be  filled  without 
necessitating  overtime  work,  compliance  with  this 
habit  becomes  automatic. 

94 


Health  and  Efficiency 


"The  regulation  of  the  working  day  has  acted 
as  a  stimulus  to  improvement  in  processes  of  manu- 
facture. Invention  of  new  machinery  and  perfection 
of  old  methods  have  followed  the  introduction  of 
shorter  hours, 

"The  establishment  of  a  legal  limit  to  the  hours 
of  woman's  labor  does  not  result  in  contracting  the 
sphere  of  her  work. 

"History,  which  has  illustrated  the  deterioration 
due  to  long  hours,  bears  witness  no  less  clearly  to 
the  regeneration  due  to  the  shorter  working  day. 
To  the  individual  and  to  society  alike,  shorter  hours 
have  been  a  benefit  wherever  introduced.  The  mar- 
ried and  unmarried  working  woman  is  enabled  to 
obtain  the  decencies  of  life  outside  of  working  hours. 
With  the  improvement  in  home  life,  the  tone  of  the 
entire  community  is  raised.  Wherever  sufficient 
time  has  elapsed  since  the  establishment  of  the 
shorter  working  day,  the  succeeding  generation  has 
shown  extraordinary  improvement  in  physique  and 
morals. 

"Wherever  the  employment  of  women  has  been 
prohibited  for  more  than  ten  hours  in  one  day,  a 
more  equal  distribution  of  work  throughout  the 
year  has  followed.  The  supposed  need  of  danger- 
ously long  and  irregular  hours  in  the  seasonal  trades 
is  shown  to  be  unnecessary.  In  place  of  alternat- 
ing periods  of  intense  overwork  with  periods  of  idle- 
ness, employers  have  found  it  possible  to  avoid  such 
irregularities  by  foresight  and  management. 

"The  arguments  in  favor  of  allowing  overtime  In 
95 


Citizens  in  Industry 


seasonal  trade  or  in  cases  of  supposed  emergency 
have  gradually  yielded  to  the  dictates  of  experience 
which  show  that  uniformity  of  restriction  is  essen- 
tial to  carrying  out  the  purposes  of  the  act. 

"In  order  to  establish  enforceable  restrictions 
upon  working  hours  of  women,  the  law  must  fix  a 
maximum  working  day.  Without  a  fixed  limit  of 
hours,  beyond  which  employment  is  prohibited,  regu- 
lation is  practically  nullified.  Exemptions  of  spe- 
cial trades  from  the  restriction  of  hours  not  only 
subject  the  workers  in  such  industries  to  injurious 
overwork,  but  go  far  to  destroy  the  whole  Intent 
of  the  law.  The  diflicultles  of  Inspection  become  in- 
superable. 

"To  grant  exceptions  from  the  restriction  of 
hours  to  certain  industries  places  a  premium  upon 
irregularity  and  the  evasion  of  law.  When  restric- 
tions are  uniform  the  law  operates  without  favor 
and  without  injury  to  individuals.  Few  employers 
are  able  to  grant  their  employees  a  reduction  of 
hours,  even  If  they  are  convinced  of  Its  advantages, 
when  their  competitors  are  under  no  such  obliga- 
tion. Justice  to  the  employers  as  well  as  to  the  em- 
ployees therefore  requires  that  the  law  set  a  fixed 
limit  of  hours  for  working  women  and  a  limit  for 
all  alike.'' 

Care  of  Health  of  IT  omen  JForkers. — The  dan- 
ger of  fatigue  has  been  studied  on  a  wide  scale 
by  physiologists  and  the  discoveries  of  science 
have   already  Influenced  legislation  ^    and   decisions 

^Goldmark:     "Fatigue." 

96 


Health  and  Efficiency 


of  the  supreme  court  supporting  laws  for  shorter 
hours. 

This  mass  of  reports  gathered  from  Europe  and 
America  reveals  growing  intelligence  of  employers 
and  their  appreciation  of  the  need  of  paying  atten- 
tion, under  medical  guidance,  to  the  requirements  of 
girls  and  women.  The  eyes,  the  brain,  the  muscu- 
lar system  are  capable  of  doing  their  best  work  only 
when  tissues  have  had  time  to  rebuild  themselves 
after  waste  by  prolonged  effort,  and  alternations  of 
rest  and  activity  raise  efficiency  to  the  highest  point 
at  which  energy  can  be  maintained. 

This  discovery  it  is  which  accounts  for  the  intro- 
duction of  rest-rooms  adjacent  to  shops  or  sales- 
rooms. In  large  establishments  a  thoughtful  and 
high-minded  matron  is  employed  to  have  oversight 
of  these  rest-rooms  in  order  to  prevent  abuse,  pre- 
serve order  and  offer  needed  counsel.  The  rooms 
are  furnished  with  comfortable  chairs,  couches,  read- 
ing-matter and  sometimes  a  piano  is  appreciated. 
The  business  world  has  yet  to  learn  the  restoring 
and  exhilarating  power  of  music.^ 

In  the  best  establishments  night  work  of  women 
is  unknown,  in  this  conforming  to  advanced  protec- 
tive legislation.  By  careful  observation,  with  medi- 
cal advice,  it  is  found  possible  to  give  girls  a  brief 
recess  in  the  forenoon  and  again  in  the  afternoon, 
before  fatigue  Impairs  speed  and  quality,  and  this 
with  economic  advantage  which  may  be  approxi- 
mately measured. 

^  K.  Buecher :    Arbeit  und  Rhythmus. 

97 


Citizens  in  Industry 


That  Is  a  chivalrous  and  thoughtful  act  when  a 
firm  lends  overshoes  and  umbrellas  to  poor  girls 
who  might  risk  pneumonia  by  going  home  In  a  cold 
rain  and  who  either  forget  or  cannot  afford  to  buy 
an  umbrella. 

A  visiting  nurse  is  part  of  the  equipment  of  any 
complete  system  of  protection  of  health.  A  trained 
woman  helps  care  for  the  sick  and  Injured,  in  shops 
and  m_ercantile  establishments,  under  medical  direc- 
tion; instructs  mothers  In  the  care  of  their  children 
and  hygiene  of  the  home;  and  arranges  for  the 
needs  of  convalescents. 

COST    AND    GAIN    OF    SAFETY    AN'D    HEALTH    MEASURES 

It  is  evident  that  the  cost  of  introducing  and  main- 
taining devices  for  promoting  safet}%  health  and 
comfort  is  a  matter  for  serious  consideration.  If 
the  accounts  of  an  establishment  are  properly  kept 
they  will  show  the  absolute  amount  spent  for  the 
various  forms  of  betterment,  the  relative  amount  as 
compared  with  other  costs  of  production,  and  the 
Inroads  made  on  net  profits  and  dividends.  Such 
accounts  should  also  show,  as  accurately  as  possible, 
the  net  gain  from  this  expenditure,  regarded  as  In- 
vestment in  a  going  concern,  as  reduction  of  loss 
of  time  from  disability  and  sickness,  increased  out- 
put per  man  and  per  machine,  reduced  cost  of  each 
article  put  on  the  market.  Less  tangible  and  cal- 
culable, but  just  as  real  is  the  gain  in  goodwill  and 
contentment,  indicated  by  greater  continuity  In  em- 

98 


Health  and  Efficiency 


ployment,  diminution  of  restlessness  and  inclination 
to  change  on  slight  provocation,  and,  possibly,  more 
consideration  and  reflection  under  temptation  to 
strike.^ 

The  books  of  a  firm  may  well  show  the  special 
investment  for  such  arrangements  as  heating  and 
ventilation,  sanitation,  drainage,  water  supply,  light- 
ing, cleanliness,  drinking  water  (filtration,  refrigera- 
tion and  distribution),  lavatories,  locker-rooms  and 
lockers,  emergency  rooms  and  equipment,  apparatus 
for  removal  of  dust  and  fumes,  safety  appliances 
on  dangerous  machinery,  bicycle  sheds,  and  even 
rest-rooms,  reading-rooms,  recreation  grounds,  libra- 
ries, games. 

It  certainly  "pays  to  be  good" — in  some  circum- 
stances. In  a  well-ventilated  and  well-lighted  tailor 
shop  there  is  less  waste  of  cloth  in  cutting  garments, 
the  vision  is  clearer,  the  brain  is  more  active,  atten- 
tion is  more  alert;  a  better  class  of  workers  select 
shops  where  the  conditions  and  pay  are  more  attrac- 
tive; and  where  combustible  dust  and  shavings  are 
cleaned  up  the  insurance  rate  is  enough  lower  to 
pay  the  cost  of  tidiness. 

We  have  as  yet  rather  imperfect  estimates  of 
these  expenses,  but  present-day  methods  of  account- 
ing will  not  leave  us  long  in  the  realm  of  guesswork. 
We  may  cite  a  few  attempts  to  analyze  this  cost 
factor. 

^  See  Yale  &  Towne  Mfg.  Co. :  "Prevention  vs.  Cure  in 
Industrial  Operations."  National  Civic  Federation,  Tenth 
Annual  Meeting,  1909,  p.  170. 

99 


citizens  in  Industry 


In  one  important  establishment  the  investment 
cost  figured  up  about  $ioo  per  employee.  The  an- 
nual operating  expenses  for  the  same  features  were 
about  $20  per  employee.  According  to  the  Inter- 
national Harvester  Company's  Annual  Report  for 
19 1 2,  the  amounts  expended  by  the  Company  dur- 
ing the  year  for  welfare  features  affecting  working 
conditions,  comfort,  health,  and  lives  of  employees 
were : 

Compensation  for  industrial  accidents $135,298.91 

Contribution  to  Employees'  Benefit  Association.  68,186.25 

Pensions  to  aged  or  disabled  employees 31,765.06 

Accident  prevention 82,988.48 

Medical,  including  anti-tuberculosis  campaign.  .  55,080.22 

Sanitation    and   ventilation 66,224.16 

Education,  clubs,  matrons,  lunch-rooms,  etc.  . .  .  55,891.34 

$495,43442 

The  United  States  Steel  Corporation,  with  200,- 
000  employees,  was  expending  in  19 12  as  follows: 

Relief  for  men  injured  (accident  insurance)  .  .$2,000,000.00 

Accident  prevention  system 750,000.00 

Sanitation,   comfort,  etc 1,250,000.00 

Pension  fund   (annual  payments)    200,000.00 

Creation  of  permanent  fund   (13  years) 500,000.00 

$4,700,000.00 
In  all  about  $5,000,000  annually.^ 

^  Mr.  R.  C.  Boiling,  in  Annals  of  American  Academy,  July, 
1912,  38  ff. 

100 


Health  and  Efficiency 


"The  Germania  Insurance  Company  of  New- 
York,  in  19 10,  had  80  clerks  in  one  office.  Previous 
to  the  proper  ventilation  thereof,  10  per  cent,  were 
absent  on  account  of  illness  all  the  while.  Since 
then,  absenteeism  has  been  reduced  practically  to 
nothing."  ^ 

The  Manhattan  Trust  Company  of  New  York  by 
proper  ventilation  increased  the  efficiency  of  the 
force  so  much  that  they  could  reduce  the  number  of 
employees  4  per  cent. 

Records  show  that  the  United  States  Pension  Bu- 
reau, by  going  into  well-ventilated  and  lighted  rooms, 
reduced  the  days  of  illness  of  employees  from  18,736 
to  10,114  days  a  year,  even  with  a  much  larger 
working  force. 

In  the  printing  establishment  of  Mr.  C.  J.  O'Brien, 
a  new  ventilation  system  was  introduced  by  the  in- 
sistence of  the  State  Department  of  Labor,  but  it 
is  willingly  retained.  "Whereas,  formerly,  the 
men  had  left  work  on  busy  days  in  an  exhausted 
condition  and  sickness  was  common,  now  the  men 
left  work  on  all  days  in  an  entirely  different  con- 
dition and  sickness  has  been  very  much  re- 
duced. The  errors  in  typesetting  and  the  time  re- 
quired for  making  corrections  were  greatly  re- 
duced." 

In  a  similar  way  we  shall  before  long  have  accu- 
rate statements  as  to  the  pecuniary  profit  of  hygienic 
measures. 

^  Mr.  D.  D.  Kimball  in  Bui.  of  American  Museum  of 
Safety,  June,  1914. 

lOI 


Citizens  in  Industry 


One  firm^  employing  about  3,000  workmen  has 
made  a  statement  which  indicates  their  Hne  of  rea- 
soning as  to  net  advantages.  When  the  IlHnois  law 
of  compensation  was  passed  in  191 1,  the  casualty 
companies  raised  the  rate  of  liability  insurance  from 
30  cents  to  $3.35.  That  awakened  attention. 
Something  must  be  done.  By  introducing  medical 
examinations  and  "safety  first"  regulations  and  in- 
structions, they  secured  a  rate  of  85  cents,  a  saving 
of  $2.50  on  a  payroll  of  $290,000  from  May  i  to 
October  i.    And  they  noted  these  results: 

"Personal  interest  means  closer  contact;  closer 
contact  brings  quicker  response;  quicker  response  in- 
sures better  care;  better  care  secures  more  content- 
ment; more  contentment  produces  better  work;  bet- 
ter work  yields  more  profits.  More  safety  means 
fewer  accidents;  fewer  accidents  result  in  less  lost 
time;  less  lost  time  brings  more  steady  work;  more 
steady  work  produces  increased  efficiency;  increased 
efficiency  causes  greater  output;  greater  output  yields 
more  profits. 

"Company  insurance  permits  personal  settlement; 
personal  settlement  eliminates  friction;  friction  elim- 
inated avoids  disputes;  avoided  disputes  require  no 
arbitration;  compensation  is  easily  settled;  litigation 
prevented:  this  means  more  profits." 

Reports  for  the  first  year  of  the  plan  showed 
a  marked  increase  of  shipments  and  a  decreased 
payroll — due  to  the  selection  and  protection  of  em- 
ployees. 

^  Avery  Co.,  Peoria,  111. 

102 


Health  and  Efficiency 


ORGANIZATION     OF     CAPITALIST     MANAGERS     TO      PROMOTE 
SAFETY   AND    HEALTH 

The  National  Council  for  Industrial  Safety. — 
The  organization  of  a  national  organ  for  the  reduc- 
tion of  occupational  injuries  is  significant  enough 
for  special  notice  in  this  connection.  The  follow- 
ing statement  was  made  by  the  president,  Mr.  Robert 
W.  Campbell ;! 

"We  have  been  passing  through  several  distinct 
epochs  in  our  industrial  and  economic  life.  These 
might  be  classed  as,  first,  the  feudal  or  paternalistic 
period;  secondly,  the  individualistic;  and  lastly,  the 
one  in  which  we  are  now  living — the  cooperative 
epoch. 

"All  forms  of  social  activity  to-day  are  taking  a 
trend  toward  cooperation.  In  none  of  these  move- 
ments is  there  more  need  for  cooperation  than  in  the 
movement  for  the  prevention  of  accident.   .  .   . 

"To  meet  these  causes  what  must  the  industrial 
concern  do?  It  must  provide  proper  working  con- 
ditions; it  must  provide  proper  and  efficient  safe- 
guards upon  dangerous  machines  and  appliances,  and 
secondly,  it  must  educate  its  men  and  inculcate  In 
them   habits   of   caution.   .   .  . 

"Experience  has  shown  that  this  can  only  be  ef- 
fected by  some  comprehensive  organization,  an  or- 
ganization which  will  include  both  the  employer  and 
the  men.   .   .   . 

^Safety  Engineering,  Oct.,  1913,  240  ff.  The  City  Club 
Bulletin^  June  15,  1914. 

103 


Citizens  in  Industry 


"A  large  number  of  Industrial  and  transportation 
concerns  have  been  engaged  for  many  years  past 
in  organized  effort  to  reduce  accidents.  The  Inter- 
national Harvester  Company,  the  General  Electric 
Company,  the  Chicago  &  Northwestern  Railway 
Company,  the  United  States  Steel  Corporation  and 
its  subsidiary  companies,  the  Middle  West  Utility 
Company,  the  Commonwealth  Edison  Company, 
and  a  number  of  large  and  small  industries,  many 
of  which  are  well  known  to  all  of  you,  have  been 
actively  at  work  for  many  years. 

"They  have  approached  their  work  first  through 
plant  organization.  In  working  that  out,  they  have 
found  some  five  or  six  essential  elements.  The 
first  is  to  have  a  safety  engineer  or  a  safety  inspector 
who  inspects  the  plants  for  the  dangerous  places 
and  dangerous  conditions  and  sees  to  it  that  they 
are  made  safe.  This  is  usually  supplemented  by  a 
central  committee  of  safety  at  each  plant,  com- 
posed, possibly,  of  the  general  superintendent  or  his 
assistant,  acting  as  chairman,  the  safety  inspector, 
acting  as  secretary,  and  from  three  to  five  other  re- 
sponsible superintendents  or  foremen  acting  with 
them.  This  committee  has  charge  of  the  organized 
effort  in  that  particular  plant.  The  work  of  this 
committee  and  of  the  safety  inspector  is  supple- 
mented by  the  work  of  the  foremen  themselves,  who 
in  the  performance  of  their  daily  task  are  required 
to  inspect  their  plants  and  at  least  once  a  week  to 
make  written  reports  upon  conditions.  These  fore- 
men are  brought  together  in  monthly  meetings,  which 

104 


Health  and  Efficiency 


have  been  productive  of  excellent  results.  The  work- 
men themselves  are  brought  into  the  scheme  by  the 
formation  of  workmen's  committees,  appointed  in 
each  department.  From  time  to  time  the  member- 
ship of  these  committees  is  changed  so  that  after  a 
while  every  man  in  the  plant  will,  at  some  time  or 
other,  have  served  upon  the  safety  committee.  These 
men  inspect  their  departments  for  dangerous  con- 
ditions or  practices,  make  recommendations  in  writ- 
ing, investigate  accidents,  and  make  their  report  as 
to  where  the  cause  may  be,  and  what  discipline  should 
be  meted  out  to  the  guilty  party  if  it  is  due  to  care- 
lessness. 

"Safety  Devices 

"The  organization  must  first  take  up  the  task  of 
safeguarding.  This  is  generally  under  the  direct 
supervision  of  the  safety  inspector.  .  .  .  The  safety 
inspector  is  a  possibility  even  in  the  smaller  indus- 
try, for  he  does  not  need  to  give  all  of  his  time  to 
this  work,  but  may  perform  other  duties  if  the  plant 
is  too  small  to  permit  of  the  employment  of  a  man 
specially  for  that  purpose.  This  safeguarding  al- 
ways requires  a  certain  standardization  of  the  re- 
quirements of  that  particular  plant.  This  is  done 
under  the  direction  of  the  central  committee.  The 
safety  inspector  must  see  to  the  proper  installation 
of  the  safety  devices,  their  proper  use  and  their 
maintenance.  No  new  piece  of  machinery  in  a  well- 
organized  plant  is  purchased  nowadays  without  speci- 
fications for  safety  devices  upon  it.     And  the  day  Is 

105 


Citizens  in  Industry 


coming  when  the  manufacturer  of  machine  tools 
will  not  permit  to  go  out  from  his  shop  a  lathe  or 
other  machine  that  is  not  properly  and  effectively 
safeguarded  to  eliminate  the  hazards  in  connection 
with  its  use. 

"But  the  most  important  function  of  this  organi- 
zation Is  that  of  education.  The  men  are  the  hard- 
est to  reach.  Many  an  old  employee  has  a  contempt 
for  the  new  idea  and  the  new-fangled  devices,  and 
will  not  use  them.  The  new  men  do  not  know  about 
them  and  so  educational  work  is  an  imperative  ne- 
cessity. 

"Educating  the  Men 

"This  takes  many  forms.  First  comes  the  adop- 
tion of  operating  rules  with  respect  to  the  special 
hazards  of  that  plant.  These  rules  are  put  in  the 
hands  of  all  employees,  particularly  in  the  hands  of 
new  men,  who  are  instructed  by  their  foremen  and 
by  the  plant  preacher.  These  are  required  to  read 
the  books  themselves,  and  ultimately,  in  any  well- 
organized  plant,  to  pass  an  examination  upon  them. 

"Danger  signs  are  posted  about  the  plant  for  the 
guidance  and  instruction  of  the  men. 

"But  you  can't  get  very  far  until  the  men  are  in- 
terested. All  sorts  of  schemes  are  adopted  to  ac- 
complish that  end.  Among  these  are  the  giving  of 
Safety  First  buttons  of  one  form  or  another,  with 
the  monogram  of  the  company  upon  them,  to  all  who 
pass  a  satisfactory  examination  in  safety  rules  of 
that  company.    Then  there  are  prizes  given  to  indi- 

io6 


Health  and  Efficiency 


viduals  for  meritorious  service  or  for  valuable  sug- 
gestions, and  this  [scheme]  can  be  carried  out  into 
almost  all  sorts  of  details.  Cash  bonuses  are  put  up 
in  some  organizations  v^hich  go  to  foremen  of  de- 
partments which  have  been  able  to  keep  their  acci- 
dent records  under  a  certain  'bogey.'  Monthly  bul- 
letins are  issued;  companies  with  several  plants  is- 
sue monthly  bulletins  containing  items  relating  to 
safety  and  safety  devices  and  rules  of  conduct.  Bul- 
letin boards  are  placed  throughout  the  plant,  upon 
which  interesting  information,  instructive  and  edu- 
cational, is  placed  for  the  purpose  of  educating  and 
interesting  the  men  in  that  way.  Then  there  are 
safety  mottoes  and  slogans  placed  upon  pay  en- 
velopes, shop  tickets  and  other  stationery  that  is 
used  throughout  the  plant;  sometimes  stenciled  on 
the  doorways  or  other  places  where  they  are  likely 
to  be  seen.  Some  plants  have  an  illuminated  sign  at 
their  gates.  So  that  by  use  of  the  slogan,  sign  and 
danger  sign  will  the  matter  of  safety  be  constantly 
kept  in  the  minds  of  the  men  themselves. 

"Meetings  of  foremen  are  also  held.  Some  plants 
have  gone  so  far  as  to  have  dinners  at  which  all  of 
their  principal  foremen  are  invited,  and  there  safety 
talks  are  had.  Lectures  have  also  been  provided, 
and  moving  pictures  are  brought  to  the  attention  of 
the  men  in  meetings  called  for  that  purpose.  It  does 
not  necessarily  follow,  either,  that  this  moving-pic- 
ture method  of  interesting  the  men  is  not  available 
to  the  small  concern,  because  in  many  communities 
a  number  of  concerns  join  together  and  bring  their 

107 


Citizens  in  Industry 


workmen  together  at  a  meeting  where  pictures  of 
this  kind  and  talks  on  safety  are  given  to  them. 

"Interesting  the  Children 

"One  of  the  most  effective  means  adopted  has  been 
that  of  bringing  the  matter  to  the  attention  of  the 
children  of  the  men.  One  plant  I  know  of  has  en- 
tered into  quite  a  campaign  among  the  children.  In 
conjunction  with  the  street-railway  company  that 
concern  has  caused  to  be  shown  to  all  the  school  chil- 
dren in  the  city  moving-picture  reels  and  stereopticon 
slides.  Safety  talks  are  given  to  them.  The  echo 
of  that  has  reached  the  plant  time  and  time  again, 
the  children  at  home  bringing  the  subject  up  with 
their  parents.  Sometimes  dinners  are  given  to  the 
clergy  and  to  the  principal  men  in  the  community  to 
get  them  all  interested. 

"Possibly  the  most  effective  means,  however,  are 
proper  disciplinary  measures  taken  where  men  have 
been  careless  and  where  through  the  fault  of  one  of 
them  a  serious  accident  has  occurred. 


"Widespread  Cooperation 

"The  insurance  companies  have  likewise  been  very 
active,  and  through  their  inspectors  and  through  edu- 
cational campaigns  have  brought  the  attention  of 
their  insured  to  the  matter  of  accident  prevention. 
The  merit  rating  system  which  is  going  into  effect  In 
many  of  the  accident-Insurance  companies  Is  a  po- 

io8 


Health  and  Efficiency 


tent  element  in  bringing  the  matter  of  safety  work 
to  the  attention  of  the  insured,  for  when  a  man  can 
get  a  lo  per  cent,  or  a  20  per  cent,  reduction  in  his 
premium  rate  by  safeguarding  his  plant  and  estab- 
lishing an  organization  within  it,  he  is  pretty  likely 
to  do  it. 

"The  federal  and  state  bureaus  of  labor  have 
become  very  active  in  recent  years  and  we  find  some 
very  constructive  work  going  forward  In  a  number 
of  the  states,  particularly  In  Wisconsin,  Pennsylva- 
nia, New  York,  Ohio,  California  and  Minnesota, 
where  some  very  excellent  legislation  has  been 
adopted. 

''Striking  Results 

.  .  .  "Wherever  an  organized  accident-preven- 
tion campaign  has  been  carried  through  intelligently 
there  has  been  a  marked  decrease  in  accidents.  The 
various  industries  report  from  35  to  75  per  cent,  in 
reduction  of  accidents  in  their  plants.   .   .   . 

"Again,  It  is  a  work  of  economy,  actual  fiscal  econ- 
omy. When  you  have  prevented  a  man  from  being 
killed  or  injured,  you  have  saved  just  that  much 
money  in  compensation,  especially  in  a  state  like 
Illinois,  where  we  have  a  compensation  law  to-day. 
Likewise  there  is  a  saving  in  product.  No  accident 
occurs  without  some  damage  to  product  and  some 
damage  to  machinery,  all  of  which  is  an  economic 
waste  and  loss.  So  if  you  can  cut  down  your  acci- 
dents from  25  to  75  per  cent,  you  are  just  that  much 
ahead  in  economy  of  operation.     There  is  also,  of 

109 


citizens  in  Industry 


course,  the  social  economy,  the  saving  to  the  com- 
munity, because  every  time  a  man  is  injured,  some 
part  of  the  burden  falls  upon  the  community  as  well. 

"One  might  also  point  out  the  increase  in  effi- 
ciency that  results  from  preventing  accidents.  When 
a  man  is  injured  in  your  plant  there  is  of  necessity  a 
disintegration  of  your  working  force  for  ten,  fifteen, 
twenty  minutes,  possibly  the  whole  day;  the  force  is 
all  wrought  up  over  the  accident  and  the  men  do  not 
do  as  good  work  as  they  otherwise  would.  In  some 
industries,  when  a  man  is  killed  they  lay  off  for  the 
rest  of  the  day.  In  others  they  lay  off  until  the 
man  is  buried.  That  is  not  efficiency.  Furthermore, 
when  an  old  hand  is  injured  or  killed  a  green  hand 
has  to  be  installed  in  his  place.  The  new  man  can- 
not perform  the  work  as  efficiently  as  the  man  whose 
place  he  takes.  Every  time  you  put  in  a  green  man 
you  slow  up  the  whole  process,  particularly  if  it  is  in 
a  plant  where  each  man's  work  depends  a  little  bit 
upon  that  of  his  fellow. 

"I  don't  need  to  mention,  I  am  sure,  that  it  is  a 
work  of  humanity;  a  life  saved  or  a  limb  saved  is 
surely  a  humanitarian  effort,  whatever  the  motives 
involved. 

"Recognizing  this  fact,  there  was  organized  some 
six  months  ago  the  National  Council  for  Industrial 
Safety.  .  .  .  The  need  was  felt  for  some  organiza- 
tion which  could  stimulate  accident-prevention  work 
throughout  the  country  and  provide  a  means  for 
exchanging    ideas    between    employers    themselves. 

IIO 


Health  and  Efficiency 


This  organization  was  the  gradual  outgrowth  of  the 
effort  of  a  number  of  men  covering  a  period  of  sev- 
eral years,  particularly  within  the  membership  of 
the  Association  of  Iron  and  Steel  and  Electrical  En- 
gineers, which  organization  was  really  the  father  of 
the  coordinated  effort  that  Is  now  being  made  to-day 
through  the  National  Council. 

"The  organization  endeavors  through  its  bureau 
of  Information  to  supply  Its  members  with  safety 
data  respecting  safeguards,  educational  methods 
and  schemes  and  organization  ideas.  It  has  lists  of 
experts,  lecturers  and  speakers,  moving-picture  reels 
and  stereopticon  slides,  and  all  sorts  of  data  of  that 
kind,  available  to  anyone  who  wants  it;  it  provides 
a  weekly  distribution  of  material  calculated  to  In- 
terest the  boss  himself  as  well  as  the  men,  and  In 
general  provides  a  clearing-house  for  all  sorts  of 
safety  Information.  Through  Its  standardization 
committee  It  has  effected  standard  safeguards  for 
general  and  special  hazards.  It  has  sections,  which 
are  groups  of  Industries  whose  hazards  are  particu- 
lar or  peculiar  unto  themselves,  such  as  the  tanner- 
ies, foundries.  Iron  and  steel,  etc.,  and  at  Its  annual 
congresses  it  provides  a  means  for  the  safety  men  of 
the  country  getting  together  to  spend  three  or  four 
days  In  discussing  safety  matters,  and  listening  to 
papers  and  reports,  and  entering  Into  discussions 
with  respect  to  them.  It  is  putting  forth  a  publicity 
and  educational  propaganda  throughout  the  country, 
and  from  the  clippings  that  we  see  we  believe  that 
the  doctrine  of  safety  Is  reaching  from  one  end  of 

III 


Citizens  in  Industry 


the  country  to  the  other,  not  alone  through  our  ef- 
forts, but  through  the  efforts  of  others  as  well. 

"One  of  the  important  features,  however,  of  the 
National  Council's  work  is  its  work  through  local 
councils.  In  any  community  where  it  has  five  or 
more  members  those  members  are  privileged  to  get 
themselves  into  a  local  organization,  where  at 
monthly  meetings  they  may  get  together  and  dis- 
cuss the  problems  that  are  common  to  the  industries 
of  that  particular  community,  and  may,  if  the  field 
is  not  already  preempted  by  a  public  safety  organiza- 
tion, undertake  the  task  of  inaugurating  a  public 
safety  campaign." 

The  National  Association  of  Manufacturers  Is 
another  powerful  organization  which  has  committed 
itself  to  a  policy  of  prevention  of  injuries  by  educa- 
tional lectures  and  by  various  publications. 

All  this  vigorous  actlvit}'  is  In  contrast  with  the 
apathy  of  only  too  many  employers,  who  must  be 
forced  by  legislation  to  do  their  duty.  "The  regret- 
table thing  to  me  is,  that,  barring  a  few  notable  ex- 
ceptions, our  employers  throughout  the  United 
States  did  not  get  busy  on  this  important  matter  of 
accident  prevention  and  safeguarding  until  they 
were  forced  by  legislation.  What  they  might  have 
done  voluntarily  years  ago,  with  the  applause  of  the 
masses,  they  neglected  to  do  until  the  legislation 
made  it  necessary,  and  not  often  for  any  humane 
consideration."  ^ 

^  M.  W.  Alexander  (General  Electric  Co.,  Lynn,  Mass.): 
First  Cooperative  Safety  Congress,  p.  210. 

112 


Health  and  Efficiency 


A  distinguished  authority  in  preventive  medicine 
has  commented  on  these  efforts  of  the  more  advanced 
employers  to  promote  national  health. 

"The  insurance  companies  complain  of  the  toll 
due  to  unnecessary  and  preventable  disease.  In 
former  years  the  medical  officers  would  occasionally 
discuss  this  economic  loss  from  preventable  disease, 
but  beyond  that  stage  there  was  nothing  done.  Now 
many  of  the  insurance  companies  are  providing  some 
form  of  welfare  service  for  their  insured  and  some 
of  them  are  most  efficient  agencies  for  the  conserva- 
tion of  human  efficiency. 

"Insurance  companies  show  a  disposition  to  be 
something  more  than  brokers  selling  death  certifi- 
cates to  the  few  and  getting  the  cost  plus  brokerage 
fees  from  the  many.  The  brainiest  men  in  insurance 
clearly  see  that  it  is  good  business  policy  to  work  for 
human  conservation. 

"The  employers  of  labor  are  most  active  health 
departments  at  the  present  time.  The  above  phrase- 
ology was  intentionally  employed.  The  brainiest 
and  most  farseeing  employers  are  doing  as  much 
for  the  conservation  of  the  health  of  their  employees 
as  is  being  done  in  well-developed  municipal  health 
departments.  Their  per  capita  expenditure  for 
health  is  greater  than  the  per  capita  expenditure  of 
the  average  health  department  and  the  effort  ex- 
pended goes  straighter  to  the  individual  who  needs  it. 

"The  labor  unions  are  doing  much.  Some,  like 
the  cigar-makers,  are  most  active  health  agencies; 
others  lag  as  much  as  do  certain  employers  of  labor. 

113 


Citizens  in  Industry 


"All  of  this  means  that  the  organized  medical  pro- 
fession is  no  longer  the  great  agency  for  the  promo- 
tion of  health  work.  Theirs  was  the  voice  that  cried 
out  in  the  wilderness.  They  were  the  John  the 
Baptists  who  prepared  the  way.  But  the  cry  now 
is,  and  from  now  on  will  be,  from  other  quarters. 

"Nothing  has  so  promoted  the  health  activities  of 
employers  as  workingmen's  compensation  acts.  The 
immediate  result  was  'safety  first'  work,  but  the  ef- 
fect has  spread  far  beyond.  The  next  step  is  a 
health  insurance  act.  When  this  becomes  operative 
it  will  be  as  much  of  a  stimulus  to  general  health 
conservation  as  the  workingmen's  compensation  act 
has  been  to  employers'  interest  in  the  conservation 
of  the  health  of  their  employees.  All  of  which 
means  that  the  way  to  promote  the  cause  is  to  de- 
velop its  economic  side,  to  demonstrate  the  money 
waste  of  inefficiency.  The  effort  stimulated  neces- 
sarily will  take  care  of  the  life  loss."  ^ 

NEW   PROBLEMS   FOR  THE    NATION   TO   FACE 

What  will  be  done  v/ith  those  who  are  rejected 
by  the  new  and  higher  industrial  standards?  What 
will  become  of  those  laborers  who  cannot  pass  the 
medical  examinations,  who  are  unprofitable  and  un- 
insurable? It  is  already  evident  that  compensation 
and  insurance  laws  will  compel  not  only  employers 
but  the  nation  to  face  the  results,  to  care  for  the 
unemployables  thrown  out  by  the  improved  stand- 

^  Dr.  W.  A.  Evans  in  Chicago  Tribune,  June  21,  1914. 

114 


Health  and  Efficiency 


ards  and  Inspections.  Charitable  funds  In  some  In- 
dustrial cities  are  already  beginning  to  feel  the  pres- 
sure from  this  cause.  But  public  and  private  char- 
ity, however  liberal,  will  not  meet  the  demand,  and 
society  cannot  carry  the  burden.  The  state  will  be 
driven  quickly  to  adopt  a  policy  of  placing  the  physi- 
cally unfit,  cast  out  by  industry,  under  curative  and 
reconstructive  treatment,  so  that  many  of  them  can 
find  employment  under  the  new  competitive  condi- 
tions. When  the  unfitness  Is  found  to  be  due  to  want 
of  training,  society  will  establish  trade  schools  and 
not  send  these  unfortunates  to  reformatories  and 
prisons  for  their  first  chance  to  learn  a  trade  and  ac- 
quire skill.  These  more  exacting  standards  and  med- 
ical examinations  will  rapidly  convince  men  that  al- 
coholism, sexual  vice,  tobacco  and  drug  habits,  as 
well  as  other  unhygienic  factors,  do  not  pay  and 
cannot  be  tolerated.  The  hardships  of  those  who 
fail  at  first  will  be  tragic  and  heart-rending,  but  they 
are  the  severity  of  surgery  and  the  bitter  medicine 
of  a  wholesome  cure.  It  may  seem  undemocratic  to 
compel  men  to  come  under  medical  control;  but  al- 
ready society  Is  obliged  to  support  these  Incompe- 
tents who  like  freedom  but  cannot  live  the  life  of 
free  men.  When  the  preventive  policy,  along  with 
insurance  of  workers,  and  segregation  of  abnormals 
in  celibate  colonies,  has  been  vigorously  carried  for- 
ward through  three  or  four  generations,  the  num- 
ber of  incompetents  will  be  reduced  to  narrow  limits 
and  they  will  not  be  a  great  burden,  especially  as  the 
product  of  commodities  per  man  and  machine  will 

115 


Citizens  in  Industry 


steadily  increase.  The  program  of  euthenics  and  of 
eugenics  is  coming  to  be  intelligently  accepted  by  an 
increasing  multitude  of  citizens;  another  century 
will  see  it  well  advanced  in  fulfillment. 


CHAPTER    III 

ECONOMIC  INDUCEMENT  TO  SECURE   EFFICIENCY  OF 

LABOR 

Passing  from  the  general  survey  of  the  universal 
and  permanent  reasons  for  promoting  individual 
efficiency  in  industry,  and  the  measures  required  to 
promote  physical  energy,  let  us  now  consider 
methods  of  realizing  the  purpose  through  economic 
incentives.  And,  first  of  all,  we  may  review  some 
of  the  devices  for  stimulating  attention  and  effort  by 
offer  of  tangible,  direct,  obvious  and  Immediate  pe- 
cuniary reward  for  superior  efficiency.  These  de- 
vices are  numerous  and  many  of  them  are  in- 
genious.^ 

PROFIT-SHARING 

Many  experiments  have  been  made  with  various 
forms  of  so-called  profit-sharing.  In  a  precise  and 
exact  sense,  the  term  "profit-sharing"  should  be  re- 
stricted to  schemes  in  which  a  certain  percentage  of 
the  net  profits  of  the  year  are  divided  among  the 

^  D.  A.  Schloss:  Methods  of  Industrial  Remuneration. 
The  Federal  Industrial  Commission  is  making  a  fresh  study 
gf  this  problem. 

117 


Citizens  in  Industry 


operatives  engaged  during  the  year,  on  some  definite 
principle — as  the  total  wages  earned  during  the  pe- 
riod by  each  employee.  Many  economists  and  em- 
ployers have  believed  that  the  distribution  of  a  part 
of  the  profits  among  the  employees  would  increase 
the  output;  that  the  wage-earners  would  be  more 
contented  with  wages  and  conditions,  w^ould  work 
harder  and  would  identify  their  interests  more 
closely  with  those  of  the  firm.  But  this  hope  has  not 
been  realized,  save  under  rare  and  peculiar  circum- 
stances. In  some  cases  the  speed  was  already  as 
high  as  could  be  sustained,  and  the  prospect  of  an 
uncertain  payment  at  the  end  of  the  year  was  not 
an  adequate  motive  to  drive  the  workers  to  more  in- 
tense endeavors.  It  was  also  felt  that  if  the  profits 
were  augmented  by  their  sacrifice,  the  laborers 
should  have  all  the  increase  and  not  part  of  it;  that 
no  gratuity  should  be  accepted  on  terms  which  would 
weaken  the  solidarity  of  worklngmen  or  their  loy- 
alty to  the  trade  union.  In  general  the  wage-earn- 
ers felt  that  the  inducement  was  too  remote  and 
uncertain;  that  even  if  they  did  their  share  and 
made  their  sacrifice  the  profits  might  fail  because  of 
the  mismanagement  of  the  firm  or  from  other  causes 
beyond  their  control  and  without  any  connection 
with  Individual  zeal  and  skill. 

On  the  other  hand,  many  employers  refused  to 
consider  a  proposition  to  divide  profits  without  the 
possibility  in  bad  years  of  sharing  Inevitable  losses. 
Thus  this  device  has  never  become  widely  popular 
with  either  party,  although  it  has  often  been  tried 

Ii8 


Economic  Inducement  to  Efficiency 

on   a  large  scale,  In  all  civilized  countries  and  by 
enthusiasts. 

In  order  to  influence  the  activity  of  a  wage-earner 
the  advantage  to  him  of  greater  speed,  tension  or 
care  must  be  immediately  apparent,  must  be  mani- 
festly connected  with  his  own  personal  conduct,  and 
must  not  be  merely  a  vague  share  In  the  results  of 
the  Improved  management  of  the  employers  and 
general  effort  of  the  whole  body  of  workers.  In 
other  words,  increased  Income  should  be  paid  for 
specific  and  measurable  acts  of  individual  effort  and 
efficiency,  and  not  be  made  to  depend  on  many  fac- 
tors over  which  the  workman  has  no  control.  Piece- 
wages,  bonus  or  reward  for  Increased  output  and 
other  methods  seem  better  adapted  to  this  end  than 
profit-sharing. 

Profit-sharing  in  Itself  does  not  touch  the  deepest 
demand  of  the  modern  workman;  a  share  In  control 
of  the  conditions  of  labor,  of  wages,  of  all  that 
affects  his  life.  It  Is  not  merely  a  larger  share  in 
the  product  but  a  voice  in  the  direction  of  the 
process,  which  will  satisfy  the  man  who  is  taught 
by  his  political  experience  the  lesson  of  democracy. 

The  experience  of  success  and  failure,  of  vitality 
and  mortality  of  profit-sharing  schemes  Is  reflected 
in  the  following  data :  ^  In  the  last  decade  299 
firms  Introduced  profit-sharing;  only  133  of  these 
retain  it.  From  188 1  to  1900,  168  firms  Introduced 
the  scheme  and  121  gave  It  up.    Experiment  usually 

^  "Profit-sharing  in  Great  Britain."  Soziale  Praxis,  Feb. 
^7>  1913.  xxii,  264. 

119 


Citizens  in  Industry 


lasts  seven  to  eight  years.  In  two-thirds  of  the 
cases  the  reason  adduced  for  giving  it  up  was  that 
expected  results  did  not  materialize.  Eighty-seven 
of  the  133  firms  introduced  profit-sharing  since 
1900.  Twenty-nine  firms  have  retained  it  for 
thirty  years  or  more.  To  judge  from  the  number 
of  industries  represented,  profit-sharing  seems  to  be 
most  practicable  with  gas  companies  (33  firms)  ; 
then  follow  glass  companies,  potteries,  chemical 
plants  (14),  provision  firms,  and  tobacco  firms 
(13),  book  printing  and  binding  (11)  ;  others  not 
more  than  one  each.  Mines  and  quarries  which 
tried  the  plan  in  six  cases  have  none  now.  In  Au- 
gust, 19 1 2,  a  total  of  106,189  employees  shared  in 
profits,  an  average  for  ten  years  of  55^  per  cent,  of 
wages.  In  the  British  Cooperative  Stores  we  find 
that  in  19 10,  the  last  year  for  which  information  is 
available,  the  system  was  in  use  in  195  ( 14  per  cent.) 
of  the  leagues  of  the  great  commercial  companies. 
The  Scotch  stores  have  paid  out  in  profit-sharing 
since  1870,  £197,000. 

The  article  here  cited  declares  that  profit-sharing 
is  usually  employed  as  a  means  of  reducing  the 
workmen's  freedom  of  movement.  With  the  in- 
creasing strength  of  the  trade  union,  therefore, 
profit-sharing  is  likely  to  become  more  and  more 
rare. 

The  experience  in  France  is  similar  to  that  in 
Great  Britain.  Only  114  profit-sharing  firms  exist; 
neither  employers  nor  employees  show  much  interest 
in  the  system.     Recently  the  miners  of  Epinac-les- 

130 


Economic  Inducement  to  Efficiency 

r  •  .■II..M     I  -  ■ '  ■'  '  ■"  '■ '■  ■ ■  " 

Mines  demanded  replacing  profit-sharing  with  a 
corresponding  wage  increase. 

Further  particulars  are  giv^en  in  a  report  of  the 
London  board  of  trade,  which  has  issued  a  report 
on  profit-sharing  and  labor  copartnership  abroad.^ 

Each  of  the  countries  included  in  the  report  has 
followed  its  own  line  of  development,  and  they  ac- 
cordingly present  notable  divergences.  France  has 
a  far  larger  number  of  schemes  than  any  of  the 
other  countries  included,  and  many  are  of  very  long 
standing.  The  French  schemes  differ  in  many  re- 
spects from  the  English  schemes.  In  the  United 
Kingdom  the  class  of  business  in  which  profit-shar- 
ing and  copartnership  have  chiefly  flourished  is 
that  of  gas  companies.  About  half  of  the  gas  pro- 
duced in  that  country  is  made  under  profit-sharing 
conditions.  French  people  have  only  two  instances 
of  profit-sharing  gas  companies,  but  many  insurance 
companies  and  banks,  a  group  that  has  only  one 
profit-sharing  representative  in  the  United  King- 
dom. Profit-sharing  mines  and  quarries,  railways 
and  tramways,  and  metal,  engineering  and  shipbuild- 
ing firms  are  also  represented  in  France,  either  ex- 
clusively or  much  more  largely  than  In  the  United 
Kingdom,  while  the  clothing  trades,  food  and  to- 
bacco trades  and  chemical  trades  are  more  largely 
represented  In  the  United  Kingdom. 

In  the  United  Kingdom  many  schemes  provide 
for  the  payment  of  the  bonus  In  cash.  More  re- 
cently the  plan  of  giving  the  work-people  facilities 

^  Cited  in  an  article  in  The  Chicago  Evening  News,  1914. 

121 


Citizens  in  Industry 


for  the  purchase  of  shares  in  the  undertaking  has 
been  largely  adopted.  The  ty^pical  French  system 
is  that  of  capitalizing  the  bonus.  Of  the  various 
methods  employed  the  most  favored  is  that  of  con- 
verting the  accumulated  bonuses  into  a  patrimoine, 
a  capital  sum  sufficient  to  provide  a  pension  for  the 
employee  after  his  retirement  and  to  leave  some- 
thing for  his  family  after  his  death. 

In  Germany  profit-sharing  has  made  little  prog- 
ress. Of  fifty-four  schemes  recorded  by  Professor 
Boehmert,  an  enthusiastic  advocate,  in  1878,  only 
nine  remained  in  existence  in  190 1.  At  present  only 
about  thirty  schemes  are  known  to  be  in  existence. 
The  twenty-one  undertakings  for  which  particulars 
are  available  employ  only  15,000  or  16,000  persons, 
about  one-seventh  of  the  number  similarly  employed 
in  the  United  Kingdom. 

The  profit-sharing  undertakings  in  Holland  are 
mostly  very  small,  the  largest  firm  practicing  the 
system  being  the  Dutch  Engine  and  Railway  Ma- 
terial Works,  at  Amsterdam,  which  has  upward  of 
2,000  work-people. 

The  only  profit-sharing  schemes  in  Italy  of  which 
particulars  have  been  received  are  those  in  force  in 
two  groups  of  mines  in  Sardinia. 

In  Switzerland  there  appear  to  be  only  eight  or 
ten  profit-sharing  schemes  in  existence,  and  most  of 
these  are  in  small  undertakings.  It  is,  however, 
interesting  to  observe  that  profit-sharing  was  tried 
in  the  federal  postal  service  as  long  ago  as  1869. 
It  was  abandoned  in  1873,  owing  to  an  anticipated 

122 


Economic  Inducement  to  Efficiency 

diminution  of  profits,  and  also  owing  to  the  exces- 
sive accounting  involved. 

In  the  United  States  only  about  twenty-five  or 
thirty  firms  have  been  reported  as  practicing  profit- 
sharing  and  copartnership,  and  most  of  these  only 
started  their  schemes  within  the  last  ten  or  twelve 
years.  The  number  of  work-people  employed  in 
the  United  States  under  conditions  of  profit-shar- 
ing and  copartnership  is  relatively  large,  as  many  of 
the  firms  or  companies  which  practice  profit-sharing 
are  vast  corporations  employing  thousands  of 
workers.  The  most  conspicuous  example  of  these 
great  profit-sharing  undertakings  is  the  United 
States  Steel  Corporation,  which  in  19 12  allotted 
more  than  60,000  shares  to  nearly  37,000  of  its 
work-people.  The  United  States  Rubber  Company, 
another  profit-sharing  undertaking,  has  about 
25,000  workers;  but  here  the  scheme  is  restricted 
to  employees  with  salaries  or  wages  of  $1,350  a 
year  and  upward. 

The  dominant  type  of  profit-sharing  in  the  United 
States  is  that  of  issuing  shares  to  employees  on  spe- 
cially advantageous  terms:  it  is  the  type  adopted 
by  the  United  States  Steel  Corporation  and  by  most 
of  the  other  very  large  companies  practicing  profit- 
sharing. 

The  report  says  that  profit-sharing  is  not  re- 
garded with  very  great  favor  in  the  United  States, 
either  by  manufacturers  and  business  men,  or  by 
economists;  the  principal  reasons  being,  first,  the 
attitude  of  the  trade  unions,  and  secondly,  the  pref- 

123 


Citizens  in  Industry 


erence  of  employers  for  other  means  of  Improving 
the  position  of  their  work-people,  such  as  "welfare" 
institutions  (sick,  accident  and  pension  funds,  ath- 
letic or  social  clubs,  swimming  baths,  reading-rooms, 
etc.) — movements  which  have  been  taken  up  with 
enthusiasm  by  many  employers  in  the  United  States. 

It  cannot  be  truthfully  said  that  the  profit-sharing 
plan  is  universally  abandoned.  Thus  a  competent 
authority^  declares:  "A  thoroughly  effective 
method  of  remuneration  includes  both  principles, 
the  differential  incentive,  which  acts  on  the  individual 
as  such,  and  profit-sharing  which  acts  on  him  in  his 
collective  capacity  as  a  member  of  a  body  bound 
together  by  common  interests  and  working  for  a 
common  end.  By  increasing  the  efficiency  of  labor 
they  diminish  its  cost  and  so  Increase  profits,  al- 
though wages  rise.  I  admit  that  the  practical  appli- 
cation of  these  principles — and  particularly  that  of 
profit-sharing — presents  difiicultles;  but  they  are  not 
insuperable,  if  the  problem  be  approached  with  un- 
derstanding and  goodwill."  It  is  entirely  possible 
that  some  future  leader  may  develop  a  method  of 
profit-sharing  which  will  escape  the  rocks  and  shoals 
on  which  previous  plans  have  so  often  been  wrecked. 

Again,  Shadwell,  in  his  "Industrial  Efficiency," 
volume  II,  page  145,  says:  "If  profit-sharing  is  re- 
garded as  an  act  of  paternal,  and  therefore  arbi- 
trary, benevolence,   or  as   a  weapon   against  trade 

^  Shadwell :     Industrial  Efficiency,  ii,  141. 

For  further  facts  see  Soziale  Praxis,  Feb.  27,  1913,  xxii, 

654- 

124 


Economic  Inducement  to  Efficiency 

unions,  or  a  means  to  any  other  ulterior  end,  It  Is 
sure  to  fall  and  to  excite  distrust  and  hostility.  The 
only  sound  basis  is  the  economic  one,  which  I  have 
endeavored  to  explain.  On  that  basis  it  becomes 
mutually  advantageous,  because  it  gives  effect  to  the 
real  relations  of  employers  and  employed  who  are 
actually  partners  in  production.  The  term  'profit- 
sharing'  Is  In  itself  a  great  stumbling-block;  If  'prod- 
uct-sharing' were  used  half  the  difficulty  would  van- 
ish." 

Mr.  Melville  E.  Ingalls,  Chairman,  Board  of 
Directors,  Big  Four  Railroad,  in  "A  Plea  for  Profit- 
Sharing,"  National  Civic  Federation,  Ninth  Annual 
Meeting,  1908,  said: 

"There  is  but  one  thing  to  my  mind  that  will 
produce  harmony  in  the  future  and  do  justice  to  all 
people,  and  that  Is  profit-sharing.  I  believe  if  every 
railroad  in  this  country  were  run  on  that  basis  we 
would  have  no  strikes.  I  believe  every  large  manu- 
facturing company  ought  to  be  put  upon  that  basis. 
Something  should  be  put  aside  for  the  subsistence  of 
the  employees,  something  for  the  pay  of  capital, 
and  then  the  balance  should  be  divided.  Make  every 
man  your  partner.  We  will  then  have,  just  as  near 
as  it  is  possible  to  have  on  this  earth,  the  good  times 
when  the  laborer  shall  have  his  fair  share  and  do 
his  fair  amount  of  work." 

Another  Important  Industrial  manager  says: 
"The  changes  that  have  taken  place  in  modern  in- 
dustry, as  contrasted  with  twenty  years  ago,  give 
the  worker  far  less  chance  to  become  economically 

125 


citizens  In  Industry 


independent.  The  chances  for  rishig  have  lessened 
as  specialization  has  increased.  Hence  the  man  who 
goes  into  any  industry  which  is  largely  depending 
on  labor  is  entitled  to  a  share  of  the  profits  of  that 
industry.  And  where  that  principle  has  been  ap- 
plied it  has  not  been  found  to  fail.  And  it  has 
never  cost  ^  anything,  but,  in  addition  to  paying  for 
itself,  has  produced  a  dividend  for  the  employer."  - 

Profit-sharing  Should  Follow  Welfare  JVork.^ — 
That  welfare  work  should  be  started  before  the 
Inauguration  of  a  profit-sharing  scheme  is  the  opin- 
ion embodied  in  a  research  report  presented  to  the 
members  of  the  Western  Efficiency  Society,  Chi- 
cago, July  24,  1 9 14.  On  this  point  the  committee 
says : 

"This  committee  believes  that  a  firm  contem- 
plating profit-sharing  or  welfare,  or  both,  would  do 
well  to  install  welfare  first.  It  is  the  logical  prepara- 
tion for  the  responsibilities  of  proprietorship.  This 
committee  has  not  lost  faith  in  profit-sharing  as  an 
agency  for  good,  but  it  believes  in  welfare  as  a 
necessary  forerunner.  It  further  believes  that  had 
the  concerns  now  old  in  the  practice  of  profit-shar- 
ing  inaugurated   welfare    first,    their   profit-sharing 

^  "Never  cost  anything" — that  is,  to  the  corporation.  But 
the  question  still  arises  how  much  the  increased  strain  cost 
the  workmen  in  length  of  life,  in  vigor,  in  leisure,  in  spir- 
itual opportunity.  This  is  an  element  in  the  calculation 
which  is  too  often  ignored  in  the  discussion. 

2  Mr.  Arthur  Williams,  1914. 

8  Cited  from  the  magazine  "ioo%,"  Aug.,  1914 

126 


Economic  Inducement  to  Efficiency 

plans  would  have  worked  out  to  a  smoother  conclu- 
sion and  would  now  be  more  nearly  perfect." 

The  substance  of  the  committee's  report  follows: 

In  the  face  of  a  careful  study  of  practically  every 
known  profit-sharing  scheme  in  this  country,  this 
committee  is  less  settled  in  its  belief  that  profit-shar- 
ing is  the  most  logical  and  practical  relief  from  in- 
harmonious relations  or  lack  of  cooperation.  In  its 
first  report  this  committee  was  inclined  to  advocate 
profit-sharing  as  an  insurance  against  the  unreason- 
able demands  of  labor;  as  a  method  of  stimulating 
workmen  to  greater  enthusiasm  and  effort  in  ex- 
change for  an  increased  income  and  a  share  in  the 
business,  as  well  as  a  means  of  compelling  more 
open  and  frank  dealing  between  men  and  manage- 
ment. Granting,  still,  that  profit-sharing  may  accom- 
plish these  things  to  a  degree,  so  many  disadvantages 
to  the  general  plan  of  copartnership  have  presented 
themselves  that  this  committee  does  not  feel  justi- 
fied in  urging  it  upon  employers  without  certain 
reservations. 

Not  all  of  us,  perhaps,  have  taken  notice  of  the 
fact  that  profit-sharing  has  been  practiced  by  many 
of  our  largest  concerns  for  the  past  twenty-five  years. 
This,  alone,  would  seem  to  be  convincing  evidence 
of  Its  worth. 

Without  the  slightest  intention  to  reflect  on  the 
undoubted  merits  of  profit-sharing,  but  rather  with 
a  desire  to  get  closer  to  the  truth,  this  committee 
ventures  to  say  that  such  may  or  may  not  be  the 
case.     It  is  possible  that  concerns  having  put  in  a 

127 


Citizens  in  Industry 


method  of  profit-sharing  are  continuing  it  rather 
than  disturb  a  peaceful  relationship  by  taking  it  out; 
or,  it  may  be  that  it  is  the  best  thing  for  the  organi- 
zation. 

Profit-sharing  has  accomplished  remarkable  re- 
sults in  some  places;  in  others  it  has  been  discon- 
tinued, not  all  for  the  same  reason,  and  while  it 
would  be  obviously  unfair  to  judge  profit-sharing  by 
its  failures  alone,  this  committee  is  actuated  by  these 
examples  to  question  its  general  applicability,  at 
least  until  more  thought  is  given  to  the  foundation 
upon  which  it  rests. 

Profit-sharing,  when  correctly  Installed,  is  un- 
questionably a  binding  influence  for  good,  but  the 
chief  trouble  seems  to  have  been  that  during  the 
period  of  adjusting  it  to  meet  local  conditions,  preju- 
dices have  arisen  among  the  workmen  and  never 
entirely  been  overcome,  even  in  the  face  of  what  ap- 
peared to  be  an  ultimate  success.  Suspicion  has  re- 
mained, and  suspicion  in  any  degree  is  the  greatest 
enemy  of  profit-sharing.  It  is  the  opinion  of  this 
committee  that  all  failures  and  the  disturbances  at- 
tendant upon  the  installation  of  profit-sharing  have 
been  directly  chargeable  to  prematurity;  and  further- 
more that  those  plans  now  considered  successful  in 
every  essential  detail  could  have  been  made  immeas- 
urably stronger. 

The  committee  finds  that  in  proportion  to  the 
number  of  concerns  able  to  support  profit-sharing, 
comparatively  few  are  doing  so.  There  are  not 
over  thirty  plants  in  the  United  States  maintaining 

128 


Economic  Inducement  to  Efncieiicy 

a  system  of  profit-sharing  In  the  strict  interpreta- 
tion of  the  term.  While  this  may  be  variously  attrib- 
uted, this  committee  favors  the  belief  that  welfare, 
while  not  necessarily  taking  the  place  of  profit-shar- 
ing, is  delaying  its  day,  and  that  the  era  of  profit- 
sharing  is  only  dawning.  A  possible  dozen  firms  of 
note  have  taken  employees  into  partnership,  and 
later  dissolved,  but  not  without  considerable  harm 
to  the  business. 

This  committee  does  not  fully  agree  with  the 
statement  made  by  the  Employers'  Welfare  Depart- 
ment of  the  National  Civic  Federation,  as  follows: 
"It  is  perfectly  safe  to  say  that  it  would  be  hard 
to  find  a  profit-sharing  plan  operating  successfully 
in  this  country  in  the  eyes  of  the  employees." 

By  this  same  token  this  committee  believes  it 
equally  safe  to  say  that  it  would  be  hard  to  find  a 
profit-sharing  employer  who  regarded  his  plan,  at 
least,  as  unsuccessful.  The  fact  of  the  matter  Is 
that  it  has  proved  extremely  difficult  to  get  at  what 
we  consider  the  true  facts  and,  without  the  aid  of 
unbiased  opinions  based  on  actual  knowledge,  the 
real  situation  must  remain,  in  a  measure,  a  matter 
of  conjecture. 

The  conclusions  of  the  committee  at  this  time 
would  be  that  there  are  two  main  reasons  why  profit- 
sharing  is  not  generally  popular  among  employers, 
and  not  more  universally  adopted.  They  are  (i) 
the  opposition  of  the  labor  unions,  which,  with  or 
without  cause,  regard  It  as  a  substitute  for  high 
wages  and  a  safeguard  against  strikes,  and  (2)  the 

129 


Citizens  in  Industry 


increasing  popularity  of  the  welfare  and  betterment 
department. 

The  chief  objection  to  profit-sharing  was  found 
to  be  the  inability  of  the  great  majority  of  work- 
men to  invest.  Others  have  been  the  tendency  of 
foremen  to  keep  down  the  wages  of  the  rank  and 
file  in  order  that  their  own  dividends  may  be  higher; 
the  purchase  of  the  stock  at  a  low  price  and  the 
sale  of  it  as  soon  as  the  price  v/ent  up,  and  the  like- 
lihood of  the  gambling  instinct  being  developed 
among  investors. 

From  its  study  the  committee  has  deduced  two 
main  complaints  against  the  annual  distribution  of 
cash.  They  are  (i)  the  failure  to  pay  market 
wages  where  such  cash  distributions  are  made,  and 
(2)  the  obligation  which  the  men,  receiving  such 
cash  distributions,  feel  toward  the  company,  plac- 
ing them  in  a  position  where  they  cannot  or  do  not 
feel  justified  in  demanding  an  increase  in  salary 
or  wages  even  though  they  are  justly  entitled  to 
it. 

The  general  impression  seems  to  prevail  among 
both  employers  and  employees  that  the  welfare  and 
betterment  department  is  serving  most  of  the  pur- 
poses of  profit-sharing.  From  the  employer's  point 
of  view,  the  advantages  of  welfare  work  over  profit- 
sharing  may  be  outlined  as  follows: 

1.  It  is  more  easily  installed; 

2.  Its  results  are  more  quickly  felt; 

3.  There  is,  by  comparison,  practically  no  risk 
involved; 

130 


Economic  Inducement  to  Efficiency 

4.  The  better  class  of  workmen  are,  as  a  rule, 
more  easily  convinced  of  its  benefits; 

5.  The  attitude  of  the  labor  unions  is  less  arbi- 
trary, since  the  workmen  are  not  bound  by  any  money 
consideration; 

6.  Although  the  workmen  may  share  in  the 
profits,  their  general  health  and  the  conditions 
under  which  they  work  may  be  such  as  to  minimize 
their  contribution  to  that  profit,  while  through  the 
activities  of  the  welfare  department  in  the  improve- 
ment of  working  conditions,  and  the  medical  depart- 
ment in  the  betterment  of  physical  health,  these  same 
workmen  might  be  able  to  earn  as  much  if  not  more 
by  reason  of  increased  output  than  they  could  get 
from  dividends. 

The  sum  of  these  six  advantages  is  a  healthier 
and  more  wholesome  working  force;  a  better  grade 
of  work,  and  an  automatic  increase  in  wages  with- 
out the  risk  and  responsibility  of  any  considerable 
investment. 

On  the  other  hand  it  has  developed,  primarily, 
that  workmen  are  more  inclined  to  depend  upon 
their  own  ability  to  earn  higher  wages  than  they 
are  upon  the  management  to  deal  justly  with  them  at 
the  time  of  the  annual  distribution.  This  sentiment 
is  due  to  a  few  concrete  and  well-advertised 
examples  of  dishonesty,  which,  however,  are  the 
exceptions,  rather  than  the  rule,  and  an  effec- 
tive campaign  of  agitation  on  the  part  of  labor 
unions. 

This  committee  does  not  subscribe  itself  to  the 

131 


Citizens  in  Industry 


belief  that  welfare  work  is  paternalistic.  This 
prejudice  is  being  rapidly  overcome. 

Employees,  unable  to  invest  money  in  a  share  of 
stock,  would  rather  see  an  agency  installed  by  which 
they  can  profit,  than  one  which  eliminates  them  be- 
cause of  financial  circumstances  over  which  they  may 
have  no  control.  On  this  point,  Mr.  R.  T.  Crane 
is  quoted  as  saying: 

"When  a  stockholder  in  the  shops  is  doing  an 
honest  day's  work,  he  is  likely  to  be  criticized  as 
setting  the  pace  for  the  other  workmen  just  be- 
cause he  is  a  stockholder.  When  strikes  have  come 
I  have  been  sorely  disappointed  to  find  that  the 
stockholder  employee  loses  influence  with  the  other 
workmen;  he  will  be  suspected  of  leaning  more 
strongly  toward  his  stockholding  than  toward  his 
laboring  side." 

Spectacular  divisions  of  profits  to  wage-earners 
occasionally  astonish  the  world.  There  are  brief 
periods  of  extraordinary  prosperity  in  particular 
lines  of  business,  due  to  the  possession  of  a  patent, 
or  to  a  lucky  combination  of  circumstances,  or  mo- 
nopoly, or  to  some  unusual  talent  of  the  managers. 
In  a  few  years  of  real  competition  these  extraor- 
dinary profits  sink  to  a  lower  level,  being  divided  be- 
tween the  consuming  public  in  lower  prices  and  bet- 
ter commodities,  and  the  wage-earners  themselves. 
No  general  progress  can  be  expected  to  come  from 
these  rare  instances  of  wage  payments  far  above  the 
going  rates  of  the  labor  market;  they  have  very  little 
significance  in  the  general  process  of  evolution,  al- 

132 


Economic  Inducement  to  Efficiency 

though  they  may  reveal  a  generous  intention,  wholly 
praiseworthy,  in  the  motives  of  the  managers.  They 
are  not  harbingers  of  a  universal  Utopia. 

One  objection  urged  against  paying  a  definite  per 
cent,  of  profits  is  that  it  divulges  the  financial  con- 
dition of  the  firm.  This  may  to  some  extent  be 
avoided  by  a  scheme  occasionally  adopted  in  which 
the  amount  of  the  dividend  to  labor  is  not  less  than 
six,  and  not  more  than  ten,  per  cent,  of  the  semi- 
annual dividend  paid  to  the  stockholders,  or  some 
similar  scale.  With  the  growing  tendency  to  re- 
quire publicity  of  accounts,  the  grounds  of  this  ob- 
jection will  be  removed,  and  this  will  be  in  the  inter- 
est of  stockholders,  the  public  and  the  workmen. 

Annual  Distribution  of  Profits  Based  on  Per- 
centage of  Earnings  of  Each  Man. — This  method  of 
encouraging  efficiency  of  employees  is  somewhat 
more  direct  than  the  earlier  schemes  of  profit-shar- 
ing. It  does  correspond  in  an  approximate  way  with 
the  efficiency  of  the  individual,  since  earnings  indi- 
cate the  employer's  valuation  of  the  services  of  the 
man  for  the  year.  Apparently  the  effect  is  whole- 
some; it  is  a  mxoral  bond  in  the  establishment;  it 
tends  to  increase  goodwill;  it  holds  out  hope;  and 
at  critical  times  gives  a  considerable  lump  sum  which 
may  be  profitably  invested. 

One  type  is  based  on  the  principle  of  an  addition 
to  wages  equal  to  the  dividends  on  stock  of  the 
same  amount.  Thus  if  the  dividend  is  12  per  cent, 
a  stockholder  who  owns  $500  in  shares  will  receive 
$60  a  year  and  a  workman  earning  $500  will  receive 

133 


Citizens  in  Industry 


the  same  amount  In  addition  to  his  wages.  This 
evidently  tends  to  identify  the  interests  of  capitaHsts 
and  operatives. 

Another  type  is  that  of  a  company  which  pays 
the  workmen  a  part  of  the  profits,  partly  In  cash 
when  dividends  are  declared,  and  partly  In  stock  of 
the  company.  This  plan  is  said  to  give  every  work- 
man a  direct  Interest  In  improving  the  earning  ca- 
pacity of  the  company.  "It  leads  them  to  discourage 
waste  and  to  check  dawdling  and  generally  to  in- 
crease the  efficiency  of  their  labor."  It  has  been 
asserted  that,  in  one  instance  at  least,  the  efficiency 
of  the  workmen  has  more  than  compensated  for  the 
money  paid  out  In  bonuses. 

Piece-price. — A  familiar  device  for  stimulating 
labor  to  highest  speed  is  payment  by  the  piece,  with 
strict  Inspection  of  the  product  to  insure  quality. 
This  method  is  so  common  as  to  require  little  com- 
ment; it  is  evident  that  a  person  will  put  forth  his 
best  powers  if  he  knows  that  he  Is  to  be  paid  Imme- 
diately for  every  increment  of  effort. 

The  piece-price  wage  Is  not  applicable  In  many 
forms  and  processes  of  industry,  and,  therefore.  In 
these  situations,  some  other  method  of  enlisting  the 
self-interest  of  the  workman  must  be  found. 

The  workmen  often  complain  that  after  they  are 
speeded  up  by  the  inducement  of  piece-rates  the  em- 
ployer cuts  down  the  price  per  piece  and  leaves  them 
worse  off  than  before,  working  harder  with  no  In- 
crease of  income.  To  obviate  this  objection  in  part 
some  firms  have  adopted  the  method  of  paying  by 


Economic  Inducement  to  Efficiency 

the  piece  as  far  as  practicable,  with  an  assured 
minimum  weekly  wage  and  a  bonus  for  extra  output. 
There  can  be  no  doubt  that  the  piece-price  payment 
of  wages  has  many  substantial  advantages.  The 
individual  workman  is  certainly  stimulated  to  put 
forth  his  utmost  energy  by  the  immediate  and  visible 
reward  for  his  superior  service;  and  hence  the  out- 
put for  each  unit  of  capital,  plant  and  machinery  is 
increased;  the  wages  received  are  larger  and  the 
payment  is  in  the  ratio  of  efficiency. 

But  over  against  these  well-known  advantages 
there  are  serious  disadvantages  of  a  system  which 
enables  employers  to  speed  up  the  machinery,  which 
may  already  be  too  rapid  for  security  and  health; 
to  take  the  most  rapid  and  strong  workman  as  a 
standard  for  the  average,  and  give  him  an  unfair 
position;  to  encourage  foremen  and  superintendents 
to  "nibble"  at  the  piece-rate  until  the  actual  sum  re- 
ceived is  finally  no  larger  than  it  was  before  the 
speeding  process  was  introduced.  The  chief  objec- 
tion is  that  payment  by  the  piece  urges  workmen  to 
excessive  strain;  and  some  shops  where  this  system 
prevails  are  scenes  of  frightful  and  feverish  haste 
ending  at  night  in  exhaustion.  There  is  no  guaran- 
tee in  the  system  itself  that  the  employee  shall  not 
be  worn  out,  cast  upon  the  scrap-heap  and  replaced 
by  some  vigorous  immigrant  peasant,  fresh  from  the 
open  fields,  who  in  his  turn  will  be  used  up  and 
rejected. 

It  is  possible  to  retain  the  principle  of  payment 
by  the  piece,  which  unquestionably  promotes  indi- 

135 


Citizens  in  Industry 


vidual  efficiency  and  larger  production,  on  certain 
conditions.  Medical  control  must  give  assurance 
by  examinations  at  regular  intervals  and  whenever 
needed,  that  the  employees  are  not  deteriorating 
under  the  pressure.  In  the  labor  contract  there  must 
be  a  guaranty  that  the  wages  will  not  be  cut  down 
by  the  insidious  process  notorious  under  the  name 
of  "nibbling."  Such  a  contract,  however,  is  not 
likely  to  become  customary  without  the  sanc- 
tion of  collective  bargaining  or  minimum-wage 
laws. 

Premium  Plan:  The  Halsey  Method. — A  certain 
wage  is  guaranteed  and  a  premium  is  paid  to  work- 
men for  increased  productivity.  The  advantages 
claimed  for  this  device  are  that  the  men  are  encour- 
aged to  produce  more  by  being  rewarded  in  pro- 
portion to  what  they  do;  the  reward  is  immediate 
and  substantial;  the  employer  does  not  cut  the  rate 
arbitrarily  and  the  workman  does  not  fear  that  his 
wages  will  be  capriciously  reduced.^ 

Time  and  Mode  of  Paying  JFages. — The  wage- 
earner  lives  ever  close  to  the  edge  of  want;  his  daily 
work  calls  for  his  daily  bread;  he  has  little  credit 
and  he  has  urgent  demands;  borrowing  is  at  ruinous 
rates  of  usury,  and  repayment  is  difficult.  Payments, 
especially  for  low-paid  employees,  should  be  at 
weekly  intervals.  The  employer  may  be  put  to  a 
slight  increase  of  trouble  and  expense  in  order  to  pay 
the  wages   frequently  and  in  convenient  ways;  but 

^Duncan:  The  Principles  of  Industrial  Management,  pp. 
221-223. 

136 


Economic  Inducement  to  Efficiency 

the  advantage  to  the  employee  deserves  considera- 
tion. 

Payments  should,  as  a  rule,  be  paid  In  money; 
for  the  workingman  has  no  bank  account  and  must 
sometimes  pay  for  cashing  checks.  He  may  be 
driven  to  the  saloon-keeper  for  the  purpose,  and  is 
at  once  In  the  sphere  of  a  dangerous  Influence. 
Without  knowing  It,  an  employee  may  be  subsidizing 
an  agency  which  undermines  industrial  efficiency. 

Reward  for  Fidelity. — Permanence  and  reliability 
of  employees  are  elements  In  efficiency  and  many 
firms  have  devised  methods  of  offering  Inducements 
to  secure  the  stability  of  their  trained  force.  From 
our  stock  of  examples  we  select  a  few  typical  Illus- 
trations. 

A  substantial  premium  Is  paid  to  each  employee  at 
the  conclusion  of  a  definite  period  of  service.  The 
premium  starts  with  a  modest  sum  and  rises  each 
year  afterward  up  to  the  twenty-fourth  year  or  some 
similar  period,  when  It  continues  at  a  level  rate. 
In  certain  cases  the  premium  varies  with  the  average 
wage  rates.  In  some  German  cities  the  same  method 
has  been  introduced  to  secure  stability  in  the  corps 
of  municipal  servants.  The  officers  of  an  American 
corporation  say  that  these  premiums  are  "simply  a 
special  recognition  for  good  service."  They  are 
this,  without  doubt,  but  they  are  also  an  Incentive  for 
the  future  and  an  inducement  to  continue  in  their 
employment  where  frequent  changes  Interrupt  the 
service. 

Premiums  for  Fidelity. — A  variation  on  the  theme 
137 


citizens  in  Industry 


Is  found  where  the  basis  for  rate  of  premium  takes 
into  account  not  only  the  length  of  service  and  rate 
of  wages,  but  also  zeal  and  devotion  to  work,  and 
quality  of  service.  In  the  lowest  rank  there  may 
be  no  addition  to  wages,  and  in  the  higher  classes 
the  rate  of  premium  ranges  from  2  to  20  per  cent. 
An  additional  premium  for  good  "team  work"  Is 
also  occasionally  seen. 

In  addition  to  pecuniary  reward,  it  has  been 
found  that  badges  of  social  distinction  are  some- 
times valued.  Thus  J.  C.  VanMarken,  Holland, 
offers  a  gold  cross  decoration,  to  be  presented  at  the 
anniversary  festival  to  every  employee  who  has  com- 
pleted twenty-five  years  in  the  service  of  the  firm. 
Names  are  Inscribed  In  a  Golden  Book,  which  has 
large  pages  mounted  on  a  winged  frame.  There 
are  situations  In  America  where  such  an  appeal 
would  provoke  envy  and  hostility,  If  not  ridicule. 

A  certain  percentage  of  the  profits  may  be  set 
aside  each  year  for  distribution  among  the  employees 
on  the  basis  of  their  efficiency.  The  men  in  the  sales 
department  are  rewarded  for  increase  of  sales  and 
reduction  of  selling  expenses.  The  fund  Is  distrib- 
uted in  the  shops  as  a  reward  for  increased  produc- 
tion or  decreased  cost,  or  both.  Employees,  In  any 
branch,  who  show  marked  ability  are  entitled  to 
participate. 

A  certain  well-known  corporation  sent  a  social  ex- 
pert, who  had  been  In  the  employ  of  the  federal  gov- 
ernment, to  go  about  among  their  women  employees 
and    make    recommendations.      As    a    woman,    she 

138 


Economic  Inducement  to  Efficiency 

could  secure  information  which  no  officer  of  the 
company  could  discover.  She  recommended  that 
night  work  should  be  abolished  and  a  minimum  wage 
of  $8  a  week  be  established.  Both  recommendations 
were  carefully  considered  and  adopted,  without 
pressure  from  legal  requirements. 

Purchase  of  Stock  by  Employees. — The  wage- 
earners  may  themselves  become  "capitalists"  on  a 
small  scale  by  ownership  of  stock  in  the  company 
which  employs  them.  Of  course  they  might  buy 
stocks  in  any  corporation  whose  stock  is  for  sale, 
If  they  chose ;  but  the  difficulty  would  be  to  command 
sufficient  money  at  one  time  to  purchase  a  share,  and 
to  select  with  wisdom  where  the  chances  of  loss  are 
so  great.  Even  when  employees  buy  stock  of  their 
employers  they  must  risk  loss.  The  objection  Is 
also  urged  that  ownership  with  the  employers  weak- 
ens the  tie  to  the  trade  union  and  increases  depend- 
ence on  the  master. 

The  method  of  selling  stock  on  the  Installment 
plan  has  been  frequently  Introduced,  with  varying 
motives  and  results.  On  the  surface  It  means  that 
the  employees  are  offered  an  opportunity  of  shar- 
ing In  the  prosperity  of  the  company  by  becoming 
capitalists  on  easy  conditions.  They  buy  a  limited 
amount  of  stock  and  pay  for  it  out  of  wages — a  form 
of  savings  and  Investment.  The  employees  must,  of 
course,  share  the  risks  of  all  capitalists  and  may  lose 
all  they  have  Invested.  The  motives  of  the  man- 
agers are  sometimes  questioned,  and  the  trade-union 
leaders  declare  that  it  is  merely  one  more  device  for 

139 


Citizens  in  Industry 


weakening  their  organizations.  Indeed  many  man- 
agers have  openly  recommended  this  scheme  for  this 
very  reason. 

Promoting  Efficiency  by  Improved  Management. 
— There  is  a  growing  conviction  among  both  stu- 
dents and  men  of  administrative  experience  that  the 
managers  of  industry  and  of  mercantile  establish- 
ments can  and  should  increase  the  social  product  by 
more  exact  methods.  Mr.  F.  W.  Taylor,  a  specialist 
in  methods  of  Increasing  efficiency,  has  summarized 
his  contribution  to  the  subject  as  follows:  ^ 

"The  aim  in  each  establishment  should  be:  (a) 
That  each  workman  should  be  given,  as  far  as  pos- 
sible, the  highest  grade  of  work  for  which  his  ability 
and  physique  fit  him;  (b)  that  each  workman  should 
be  called  upon  to  turn  out  the  maximum  amount  of 
work  which  a  first-rate  man  of  his  class  can  do  and 
thrive;  (c)  that  each  workman,  when  he  works  at 
the  best  pace  of  a  first-class  man,  should  be  paid 
from  30  per  cent,  to  100  per  cent.,  according  to  the 
nature  of  the  work  which  he  does,  beyond  the  aver- 
age of  his  class."  These  improvements  can  be  intro- 
duced by  the  employers  and  by  them  alone;  in  such 
matters  the  employees  have  no  power. 

The  object  stated  is  to  unite  high  wages  with 
low  labor  cost — cost,  i.  e.,  to  the  employer;  and 
this  object  is  promoted  by  the  application  of  the  fol- 
lowing principles:  (a)  "A  large  daily  task.  Each 
man  in  the  establishment,  high  or  low,  should  daily 

^  Shop    Management    (1911):      "Principles    of    Scientific 
Management."     Copyright,  191 1,  by  Frederick  W.  Taylor. 

140 


Economic  Inducement  to  Efficiency 

have  a  clearly  defined  task  laid  out  before  him. 
This  task  should  not  in  the  least  degree  be  vague  nor 
indefinite,  but  should  be  circumscribed  carefully  and 
completely,  and  should  not  be  easy  to  accomplish, 
(b)  Standard  conditions.  Each  man's  task  should 
call  for  a  full  day's  work,  and  at  the  same  time  the 
workman  should  be  given  such  standardized  condi- 
tions and  appliances  as  will  enable  him  to  accom- 
plish his  task  with  certainty,  (c)  High  pay  for 
success.  He  should  be  sure  of  large  pay  when  he 
accomplishes  his  task,  (d)  Loss  in  case  of  failure. 
When  he  fails,  he  should  be  sure  that  sooner  or  later 
he  will  be  the  loser  by  It.  When  an  establishment 
has  reached  an  advanced  state  of  organization  in 
many  cases  a  fifth  element  should  be  added,  namely: 
the  task  should  be  made  so  dlfTicult  that  it  can  only 
be  accomplished  by  a  first-class  man." 

Mr.  Taylor  recommends  his  plan  on  the  ground 
that  It  tends  to  prevent  strikes  and  Induces  the  best 
men  to  leave  the  trade  unions.^  It  Is  evident  that 
this  argument  was  not  expressly  aimed  to  conciliate 
the  American  Federation  of  Labor! 

The  whole  scheme  may  be  vitiated,  from  the  large 
national  standpoint,  by  its  failure  to  make  provision 
for  the  second-  and  third-class  workmen,  for  the 
physical  Integrity  of  the  best  men,  and  for  any  other 
Interest  than  high  wages  and  low  labor  cost  (to  the 
manager).  This  Is  not  an  objection  to  the  method 
within  its  range  of  application;  It  is  an  indication 
that  it  is  but  a  fragment  of  the  whole  social  problem. 

^  Shop  Management,  pp.  68,  69. 
141 


Citizens  in  Industry 


Industrial  efficiency  is  only  one  aspect  of  human 
efficiency;  and  while  it  includes  within  Hmits  finer 
Intellectual  and  social  qualities,  the  higher  ends  can 
be  achieved  only  when  other  provisions  are  made, 
as  by  systematic  medical  inspection  and  control, 
for  maximum  health,  and  for  leisure  with  cul- 
ture. The  industrial  ideal  of  civilization  is  vastly 
higher  than  the  military  and  feudal;  but,  after 
all,  as  Carlyle  said,  it  is  only  a  "preliminary 
item." 

Training  in  Methods} — Mr.  Emerson,  whose 
name  is  conspicuous  in  this  attempt  to  increase  the 
efficiency  of  labor,  has  summarized  In  his  own  way 
the  main  principles  of  procedure:  clearly  defined 
ideals,  common-sense,  competent  counsel,  discipline, 
the  fair  deal,  reliable  records,  the  best  mode  of  dis- 
patching, the  making  of  standards  and  schedules, 
standardizing  conditions,  standardizing  operations, 
standard  practice  instructions,  and  efficiency  reward. 
He  Insists  that  all  these  principles  must  be  combined 
In  a  closely  knit  system  In  which  each  finds  expres- 
sion. He  explains  the  principle  of  "the  fair  deal" 
as  Including  a  decimal  wage  rate  per  hour,  which 
varies  with  local  conditions,  and  Is  fixed  by  negotia- 
tion and  agreement  between  the  parties.  A  bonus  Is 
paid  for  work  which  extends  beyond  the  hours  per 
day,  the  normal  day  being  nine  hours.  A  time 
equivalent  Is  determined  for  every  operation,  but 
no  worker  Is  required  to  attain  this  time  equivalent; 

^Emerson   in   Engineering  Magazine,   June,    1910;    Sept., 
1911. 

142 


Economic  Inducement  to  Efficiency 

his  wages  do  not  depend  on  it  but  on  the  time  he  is 
under  orders.  These  time  equivalents  are  subject  to 
revision  up  and  down,  as  conditions  change,  but 
never  because  of  high  individual  skill.  Revision  is 
made  by  competent  disinterested  specialists,  and 
both  parties  know  all  the  reasons. 

The  principle  of  reliable,  immediate,  adequate  and 
permanent  records  is  thus  interpreted.  Records 
should  show  every  operation;  the  standard  quantity 
of  material;  the  efficiency  of  material  used;  the 
standard  price  of  material  unit;  the  efficiency  of 
price;  the  standard  quantity  of  time  units  required; 
the  efficiency  of  time;  the  standard  rate  of  wages 
for  work  of  the  kind;  the  efficiency  of  wage  rate; 
the  standard  quantity  of  time  for  equipment;  the 
efficiency  of  time  use  of  equipment;  the  standard 
equipment  rate  per  hour;  the  efficiency  of  equipment 
use.  The  principle  of  efficiency  reward  is  analyzed, 
and  said  to  include:  guaranteed  hourly  rate;  lower 
limit  of  efficiency  which,  if  not  attained,  indicates 
that  the  worker  is  a  misfit  and  requires  special  train- 
ing or  change  of  occupation;  progressive  efficiency 
reward;  efficiency  standard  established  after  care- 
ful time  studies  have  been  made;  time  standard  that 
is  joyful  and  exhilarating  [mocking  laughter  from 
workmen!];  variation  in  standards  with  different 
machines  and  conditions;  determination  for  each 
worker  of  an  average  efficiency  for  all  jobs  over  a 
long  period. 

It  is  evident  that  the  application  of  these  princi- 
ples requires  a  high  degree  of  self-discipline  in  super- 

143 


Citizens  in  Industry 


Intendents   and  overseers,   and  the   service  of  very 
capable  directors  at  every  step. 

In  the  higher  degree  of  specialization  which  char- 
acterizes the  Increased  productivity  of  the  great  in- 
dustry Is  found  the  opportunity  for  readjustment  of 
shop  direction  details.  Taylor  ^  uses  the  expression 
"functional  foremanship,"  which  means  that  work 
formerly  done  by  a  single  gang  boss  is  now  sub- 
divided among  eight  men  or  groups  of  men :  "  ( i ) 
route  clerks,  (2)  instruction  card  clerks,  (3)  cost 
and  time  clerks,  who  place  and  give  directions  from 
the  plannlng-room,  (4)  gang  bosses,  (5)  speed 
bosses,  (6)  Inspectors,  (7)  repair  bosses,  who  show 
the  men  how  to  carry  out  their  Instructions  and  see 
that  the  work  Is  done  at  the  proper  speed,  (8)  the 
shop  disciplinarian,  who  performs  this  function  for 
the  entire  establishment." 

Under  the  new  system,  much  of  the  responsibility 
for  direction  which  belonged  to  the  operative  is 
transferred  to  the  office  of  management.  The  men 
are  selected  and  trained  for  their  particular  tasks  on 
a  plan  accurately  mapped  out  In  advance.  Nothing 
is  left  to  chance  or  caprice,  and  there  Is  continuous 
cooperation  between  the  managers  and  the  work- 
men. 

It  is  claimed  for  this  system  that  it  raises  the 
wages  and  shortens  the  hours  of  the  operatives, 
while  increasing  the  quantity  and  improving  the 
quality  of  the  product. 

The  objections  of  trade-union  leaders  to  "scientific 
^  Shop  Management,  p.   104. 

144 


Economic  Inducement  to  Efficiency 

management"  were  thus  stated  by  Mr.  John  P.  Frey 
in  the  American  Federationist}  He  quotes  from 
a  representative  manager  who  had  said  that  he  had 
"absolutely  no  regard  for  machinery  or  men";  that 
both  were  worked  to  the  limit  and  rejected  as  soon 
as  they  were  not  fit  for  the  highest  degree  of  pro- 
duction. He  affirmed  that  the  representatives  of 
"scientific  management"  recommended  it  to  capital- 
ists as  a  means  of  breaking  down  collective  bargain- 
ing by  the  unions.  Furthermore,  he  claimed  that 
the  scheme  is  unscientific  because  it  does  not  include 
an  adequate  system  for  the  education  of  apprentices 
and  competent  mechanics;  nor  for  the  workman's 
progress  in  knowledge  of  mechanics.  Its  tendency 
is  toward  production  of  quantity  rather  than  quality. 
It  has  failed  to  understand  the  human  factor  and 
the  spirit  of  American  institutions,  for  it  makes  of 
one  man  a  taskmaster  without  the  consent  of  the 
other. 

Encouragement  of  Invention. — The  Improvement 
of  industrial  and  commercial  methods  depends  in 
great  measure  on  the  inventiveness  and  alertness  of 
the  persons  who  actually  perform  the  work  and  con- 
stantly observe  the  action  of  machines  and  methods. 
Since  we  must  count  on  the  inertia  of  habit  and  cus- 
tom, a  specific  motive  must  be  offered  to  overcome 
the  weight  of  wont  and  use  and  to  stimulate  creative 
activity.  Only  with  exceptional  men  can  we  be  sure 
that  the  mind  will  alv/ays  be  alert  to  find  new  ways 
and  the   will  prompt  to  use  them.      Furthermore, 

^  Mr.  John  P.  Frey  in  American  Federationist,  Mar.,  1913. 


Citizens  in  Industry 


the  operative  is  more  or  less  conscious  that  he  is 
under  orders  and  expected  to  obey  instructions  with- 
out argument.  It  is  easier  to  follow  closely  the  direc- 
tions of  a  stupid  gang  boss,  himself  slave  of  routine, 
than  to  cross  him,  dispute  with  him,  and  risk  danger 
of  discharge  by  him.  To  secure  invention  the  sys- 
tem must  offer  rewards,  provide  for  impartial  con- 
sideration, and  be  directed  by  men  who  themselves 
are  eager  to  make  progress.  Leisure  also  is  a  con- 
dition of  escape  from  routine  and  slavish  imitation. 
A  group  of  workmen  who  are  driven  to  the  limit  of 
strength  are  generally  incapable  of  invention. 

The  patent  office  is  a  device  which  has  stimulated 
invention,  because  it  protects  the  Inventor  of  an 
improved  machine  or  process  In  his  property  rights 
and  enjoyment  of  royalty.  But  experience  has  re- 
vealed defects  in  the  working  of  patent  laws.  The 
Inventor  Is  often  more  of  a  poet  than  a  business 
man;  he  Is  easily  deceived  by  more  astute  and  some- 
times unscrupulous  managers.  He  cannot  utilize  his 
patent  without  capital  for  construction  and  adver- 
tisement. Frequently  the  patent  is  useless  unless 
connected  in  a  series  already  covered  and  which  he 
cannot  control;  he  must  sell  to  those  who  own  the 
rights  In  the  previous  devices.  The  most  numerous 
inventions  are  very  slight,  and  the  changes  cannot 
be  covered  by  a  patent. 

To  meet  these  and  other  related  difficulties,  many 
employers  have  sought  to  obtain  suggestions  from 
their  operatives  and  clerks.  Some  have  set  up  boxes 
in  the  establishment  and  invited  the  workers  to  drop 

146 


Economic  Inducement  to  Efficiency 

into  them  hints,  drawings,  and  descriptions  of  pos- 
sible improvements  in  the  process.  These  sugges- 
tions are  carefully  studied  by  competent  persons  in 
some  impartial  way,  and  if  they  are  found  to  have 
merit,  the  author  is  rewarded  and  honored.  "Praise 
and  price"  are  motives  everywhere  reliable.  The 
shop  people  are  asked  for  suggestions  in  regard  to 
the  construction  and  placing  of  machinery  or  parts 
of  machines,  the  improvement  of  physical  conditions 
of  light,  heat,  moisture  and  ventilation  affecting  the 
working  energy  of  the  employees,  record-keeping, 
printed  forms,  circulars,  processes,  designs,  finish, 
boxing.  The  salesmen  are  invited  to  offer  hints  de- 
rived from  criticisms  of  the  product  by  customers, 
suggestions  as  to  advertising  and  new  fields  for 
enterprise. 

These  arrangements  tend  to  bring  the  entire  corps 
into  spiritual  relations  of  confidence  and  coopera- 
tion, awaken  faculties,  add  to  social  wealth  of  ideas 
and  production;  but  their  true  and  full  success  de- 
pends on  absolute  good  faith  and  a  degree  of  unsel- 
fishness on  the  part  of  the  employer.  In  all  these 
schemes  no  provision  is  made  for  securing  to  the 
inventor  in  a  shop  an  income  from  those  occasional 
discoveries  which  are  patented  and  become  the 
source  of  a  monopoly  gain  to  the  corporation.  In- 
stances of  robbery  could  be  cited — robbery  under 
legal  forms,  but  all  the  more  irritating  as  causes  of 
social  revolt.  This  whole  problem  of  proprietary 
rights  in  invention  is  one  that  public  authority  must 
solve;  justice  here  is  rarely  assured  by  a  conflict  of 

147 


Citizens  in  Industry 


individual  interests.     Selfishness  never  promoted  the 
common  welfare  nearly  so  well  as  public  control. 

THRIFT   MEASURES    ENCOURAGED    BY    MANAGERS 

I.  Savings. — Thrift  is  an  old-fashioned  virtue 
which  will  never  become  obsolete,  but  which  costs 
sacrifice  and  needs  encouragement.  Most  wage- 
earners  have  little  experience  in  investments;  the 
failures  and  scandals  of  a  few  savings  banks  have 
made  many  persons  suspicious  and  timid;  the  spend- 
ing impulse  and  appetites  for  immediate  gratifica- 
tions listen  only  too  readily  to  plausible  excuses  for 
extravagance.  Great  corporations,  for  example,  In- 
surance companies,  may  be  In  a  position  to  collect 
and  Invest  the  savings  of  their  employees  to  their 
advantage  in  rate  of  interest  and  ample  security. 

When  the  facilities  of  savings  banks  are  brought 
close  to  the  workmen  there  may  be  little  If  any  rea- 
son for  action  by  the  employer.  The  post-office 
savings  bank,  with  Its  numerous  local  branches,  may 
be  all  that  is  needed.  But  thrift  Is  a  virtue  whose 
merit  is  denied  by  certain  radicals  and  hard  to  cul- 
tivate under  the  best  conditions.  In  America  the 
saving  habit  Is  rare,  feeble,  and  unpopular.  The 
vaunted  statistics  of  deposits,  when  analyzed  and 
studied  In  the  light  of  budgets,  have  not  much  sig- 
nificance. From  the  top  down  Americans  are  notori- 
ously wasteful,  and  fashionable  "Society"  has  no 
right  to  offer  advice  on  this  subject,  for  Its  wastes 
arc  colossal. 

148 


Economic  Inducement  to  Efficiency 

In  any  land,  but  especially  in  our  country,  not  only 
facilities  but  inducements  and  persuasion  are  neces- 
sary to  promote  thrift — assuming  that  it  is  a  socially 
desirable  habit  and  custom.  The  3  per  cent,  interest 
bait  will  catch  a  few  who  are  hungry  and  alert;  and 
occasionally  a  prosperous  firm  using  credit  can  afford 
to  offer  5  per  cent.,  which  is  still  more  alluring. 

Savings  in  Mercantile  Establishments. — The  sav'- 
ings  of  shop  girls  are  often  so  small  that  they  would 
be  almost  ashamed  to  offer  them  for  deposit  in  a 
bank,  even  if  the  hours  of  work  were  such  as  made 
It  possible;  "but  when  the  kind  little  old  lady  with 
the  big  brown  bag  and  the  little  account  book  arrives 
at  the  store,  the  girls  do  not  hesitate  to  give  into  her 
keeping  even  a  few  pennies."  ^ 

Obligatory  Savings  Banks  for  Minors. — It  is  gen- 
erally agreed  that  with  adults  the  manager  cannot 
go  beyond  inviting  and  attracting  voluntary  deposits. 
Something  can  be  said  for  obligatory  measures  with 
young  persons.  The  lad  of  sixteen  to  twenty  has  all 
the  appetites  and  wants  of  an  adult,  and,  in  unskilled 
occupations,  he  may  have  maximum  earning  power 
at  eighteen.  He  is  not  responsible  for  wife  and 
child,  and  feels  only  limited  obligation  to  his  par- 
ents who  may  still  feed  him  at  their  table.  It  is  a 
situation  full  of  peril.  The  desire  for  happiness  is 
keen;  the  judgment  of  consequences  is  immature; 
the  temptations  to  indulgence  are  satanic  in  subtlety; 
not  even  Hercules'  choice  may  be  offered,  but  only 
one    broad   and   slippery   descending   way.      Under 

1  Mary  K.  Maule. 

149 


Citizens  in  Industry 


these  conditions  many  employers  hav^e  sought  to  con- 
trol a  part  of  the  earnings  of  minors.  A  contract  Is 
made  when  employment  Is  given  by  which  the  man- 
ager requires  the  adolescents  In  his  works  to  deposit 
on  interest  a  part  of  their  wages  or  premiums  In 
the  savings  fund  until  they  marry  or  have  reached 
maturity. 

Consumers'  Associations:  Cooperative  Stores. — 
These  are  frequently  found  in  Germany.  In  some 
places,  notably  at  Krupp's  famous  village,  near 
Essen,  the  company  fosters  the  enterprise.  All  kinds 
of  commodities  desired  by  the  employees  are  kept 
in  stock;  sales  are  for  cash;  profits  are  returned  to 
buyers  at  the  end  of  the  year  In  the  ratio  of  pur- 
chases, which  are  recorded  in  a  book  during  the  year. 
The  Cooperative  movement  is  an  exotic  In  the 
United  States  and  has  not  deep  roots.  But  the 
"high  cost  of  living"  is  now  keenly  and  severely  felt, 
and  recent  investigations  have  shown,  even  more 
clearly  than  before,  that  a  serious  part  of  the  in- 
creased cost  arises  in  connection  with  the  retail  dis- 
tribution of  staple  commodities.  European  experi- 
ence points  out  a  way  of  substantial  relief  as  soon 
as  our  people  develop  a  cooperative  spirit  and 
have  a  taste  of  Its  pecuniary  advantages.  At  this 
point,  and  without  any  hint  of  the  "truck  system," 
employers  could  aid  their  employees  to  combine  on 
principles  thoroughly  established  by  the  Rochdale 
Pioneers  in  England  and  by  the  Consumption  Socie- 
ties (Konsumverclne)  in  Germany.  The  need  of 
rigid  economy  has  never  been  accepted  in  America 


Economic  Inducement  to  Efficiency 

where  there  was  so  much  food  to  waste ;  but  there 
are  indications  that  the  era  of  reckless,  childish  ex- 
ploitation and  prodigality  is  near  its  end,  and  we 
must  learn  to  husband  our  resources  and  the  means 
of  subsistence  as  older  peoples  have  learned  to  do.^ 

Loans. — There  are  circumstances  when  the  cor- 
poration finds  it  expedient  to  lend  money  to  tested 
employees  to  buy  homes,  the  property  furnishing 
security  after  some  payments  have  been  made.  The 
interest  is  low.  When  the  loan  is  made,  a  life-insur- 
ance policy  is  taken  out  to  protect  the  widow  and 
children  in  case  of  the  death  of  the  borrowing 
employee. 

Loans  for  consumption,  in  times  of  sickness  and 
other  unexpected  and  extraordinary  trouble,  are 
often  made  by  employers  without  other  material  se- 
curity than  the  right  to  deduct  repayments  by  in- 
stallments from  wages.  Knowledge  of  the  charac- 
ter of  the  employee  may  make  it  reasonable  to 
capitalize  his  honesty,  and  lend  to  him  at  a  rate 
which  a  stranger  could  not  safely  grant,  and  which 
the  pawnbroker  or  "loan  shark"  would  contemptu- 
ously reject. 

Accident  Insurance. — Up  to  a  recent  date  the 
workmen  in  hazardous  employments  had  no  legal 
protection  in  case  of  accident  resulting  in  disability 
or  death,  except  that  paid  under  the  employers'  lia- 
bility laws.  No  indemnity  whatever  could  be  col- 
lected in  the  courts  unless  it  could  be  proved  that 
the  employer  was  negligent;  a  fact  which  was  rare 

^Fay:     Cooperation  at  Home  and  Abroad. 
151 


Citizens  in  Industry 


and  difficult  to  prove.  Litigation  was  costly  and  ate 
up  the  indemnity  which  occasionally  was  paid,  and 
it  gave   annoyance   and  loss  to  employers. 

To  bring  relief  in  this  situation  many  employers 
voluntarily  continued  the  wages  or  part  of  them, 
during  illness;  but  this  depended  on  the  kindness  of 
the  employer  and  payments  were  irregular  and  un- 
certain. In  case  of  violent  death,  when  there  was 
no  legal  claim,  the  employers  would  contribute  along 
with  others  on  a  charit}'^  basis  which  was  humiliating 
and  unreliable. 

An  advance  step  was  taken  when  employing  com- 
panies drew  up  an  accident-insurance  contract,  agreed 
to  pay  the  expenses  of  administration,  guaranteed 
the  fund,  and  deducted  the  premiums  from  the 
wages.  This  was  called  "welfare  work";  but  stren- 
uous objections  were  urged  against  it,  the  most  seri- 
ous being  that  the  men  were  obliged  to  pay  for  a 
risk  which  belonged  to  the  hazards  of  the  business. 
If  a  man  left  the  company  his  insurance  ceased,  un- 
less he  could  find  employment  with  another  corpora- 
tion which  had  established  a  similar  scheme.  Great 
antagonism  was  aroused  by  a  clause  in  some  of  the 
contracts  which  required  the  employee  to  waive  his 
right  to  sue  the  employer;  he  had  no  legal  claim  on  a 
fund  which  his  payments  had  helped  to  create. 
Some  of  the  contracts  omitted  this  objectionable 
condition. 

After  long  agitation  and  discussion  the  legislatures 
of  several  states  have  attempted  to  make  indemnities 
obligatory,  on  the  principle  that  each  trade,  in  pro- 

152 


Economic  Inducement  to  Efficiency 

portion  to  Its  hazard,  must  pay  for  the  risk  and 
charge  the  cost  of  premiums  of  insurance  in  the 
price  of  the  product  as  sold.  The  example  of  Ger- 
many, France,  England  and  other  European  coun- 
tries stimulated  this  movement;  and  it  now  seems 
probable  that  obligatory  accident  insurance  in  some 
form  will  become  common  in  the  United  States. 


COMPENSATION   IS   SATISFACTORY 

From  virtually  every  point  of  view  workmen's 
compensation,  as  it  operates  in  this  country,  has 
proved  satisfactory.  This,  at  least,  has  been  the 
conclusion  reached  by  a  commission  representing  the 
American  Federation  of  Labor  and  the  National 
Civic  Federation.  Members  of  the  commission  vis- 
ited cities  in  eight  of  the  twenty-three  states  which 
have  adopted  compensation  laws.  They  conferred 
with  state  commissions  or  accident  boards  and  pur- 
sued correspondence  with  states  that  could  not  be 
reached  otherwise.  To  quote  its  own  words  in  its 
published  report:  "The  commission  found  a  grow- 
ing satisfaction  with  compensation  laws  among  both 
employers  and  workmen.  All  suggestion  for 
changes  related  to  improvements  In  the  compensa- 
tion law,  no  one  seriously  thinking  of  repealing  It  or 
going  back  to  the  old  liability  system.  Persons  at- 
tended the  conferences  who  had  originally  opposed 
the  compensation  plan,  but  who,  after  experience 
under  It,  expressed  their  warm  approval  of  Its  prin- 
ciples." 

153 


Citizens  in  Industry 


Here  are  some  of  the  commission's  general  con- 
clusions: 

"The  commission  found  that  workmen's  compen- 
sation acts,  either  compulsory  or  elective,  have  in  a 
large  part  of  the  country,  become  the  prevailing 
method  of  adjusting  the  financial  losses  Inflicted 
upon  workmen  by  industrial  accidents,  and  that  not 
only  are  more  than  5,000,000  workmen  now  operat- 
ing under  compensation  laws,  but  that  laws  going 
Into  effect  during  the  coming  year  will  bring  several 
million  more  workmen  under  this  system.  Even 
elective  acts  have  been  so  generally  accepted  by  em- 
ployers and  employees  in  states  where  they  are  in 
force  that  in  those  instances  a  vast  majority  of  In- 
dustrial accidents  are  covered.  In  these  states  that 
have  had  experience  under  the  law  general  satis- 
faction Is  given  both  to  employer  and  employee,  and 
the  opinion  is  generally  expressed  by  those  whom 
the  commission  met  that  such  principles  will  soon  be 
the  ruling  doctrine  throughout  the  country. 

"The  laws  have  Improved  the  relation  existing 
between  the  employer  and  the  employee;  they  have 
had  a  marked  effect  on  accident  prevention  by  calling 
attention  to  the  subject  and  exciting  Interest  in  safe- 
guarding machinery  and  in  the  organization  of  safety 
committees,  and  they  have  created  a  general  cam- 
paign for  accident  prevention. 

"In  the  states  where  there  are  Industrial-accident 
boards  having  power  to  pass  upon  settlement  agree- 
ments, to  make  rules  and  regulations,  to  require  the 
filing  of  receipts   showing  the   actual  payments   of 

154 


Economic  Inducement  to  Efficiency 

compensation  to  the  men  and  having  arbitrations  and 
hearings  before  them  in  cases  of  dispute,  there  was 
found  no  danger  from  fraud  or  deception  on  the 
part  either  of  the  employer  or  the  workman.  In 
these  states  the  law  is  being  fairly  administered  and 
employees  are  receiving  promptly  their  full  compen- 
sation under  the  law.  It  is  evident  that  the  law 
cannot  be  well  administered  except  through  a  board 
or  officials  charged  with  powers  and  duties  similar 
to  those  of  the  existing  state  boards." 

These  compensation  laws  are  received  with  favor 
by  the  more  farseeing  employers  who  know  that 
such  a  world  movement  Is  inevitable.  As  one  of 
them  has  said:  "We  believe  that  this  tendency  to 
place  the  burden  where  it  belongs  is  a  great  step  in 
Industrial  betterment,  that  It  will  tend  to  maintain 
peace  In  industrial  pursuits,  and  eliminate  the  feel- 
ings of  hostility  and  hatred  engendered  by  the  old 
system  of  the  damage  suit  based  on  negligence."  ^ 

Sickness  Insurance.^ — Loss  of  income  is  more  fre- 

^  Robert  Wurst:  Article  on  the  "National  Metal  Trades 
Association,"  The  Annals  of  the  American  Academy  of 
Political  and  Social  Science,  Nov.,  1912. 

^C.  R.  Henderson:  Industrial  Insurance  in  the  United 
States  (list).     Bureau  of  Labor  Reports. 

I.  M.  Rubinow:     Social  Insurance. 

Reports  of  the  American  Association  of  Labor  Legisla- 
tion, and  of  the  National  Civic  Federation. 

A  striking  illustration  of  the  relative  importance  of  sick 
benefits  and  accident  indemnity  is  found  in  the  report  of  the 
International  Harvester  Co.,  Sept.  i,  1908,  to  May  31,  1913. 
$543»987.50  were  paid  in  cases  of  699  deaths,  and  $14,059.80 

^55 


Citizens  in  Industry 


quently  due  to  Illness  than  to  accident,  yet  the  need 
of  provision  for  this  emergency  has  not  yet  been  so 
generally  recognized.  The  trade  unions,  mutual 
benefit  societies  and  fraternal  associations  have 
fallen  far  short  of  adequacy.  Corporations  have 
occasionally  made  provision  for  sickness  indemnity 
through  the  shop  clubs  or  mutual  benefit  associations 
organized  among  the  employees  and  subsidized  by 
the  employing  company. 

When  sickness  insurance  becomes  legally  compul- 
sory in  the  United  States,  as  it  has  already  become  In 
great  European  nations,  this  form  of  welfare  work 
will  pass  away,  although  there  will  always  be  oppor- 
tunity for  supplementary  helps  by  wise  and  benevo- 
lent employers.  Here  Is  a  field  where  pioneers  In 
philanthropy  may  render  valuable  service  to  the  next 
generation. 

Pensions. — In  the  absence  of  a  universal,  federal, 
obligatory  system  of  social  insurance  in  the  United 
States,  various  strong  corporations  have  undertaken 
to  provide  old-age  and  invalidity  pensions  for  their 
employees.  The  wisdom  and  permanence  of  these 
schemes  are  still  in  question.  Certainly  private  ar- 
rangements, however  beneficial,  must  In  the  light  of 

for  26  "special  benefits";  23,739  disability  claims  were  paid: 
sickness,  $442,309.73;  accident,  $114,328.26.  Membership 
May  31,  1913,  31,769.  Average  number  of  employees  during 
1912,  42,979.  April  30,  1914:  878  deaths,  $682,119.17;  29 
special  benefits,  $14,755.97;  27,327  disability  claims  paid; 
sickness,  $565,589.62;  accident,  $127,139.27;  total,  $1,389,- 
604.00.     Membership,  April  30,  1914,  26,297. 

ij6 


Economic  Inducement  to  Efficiency 

the  world  movement  be  regarded  as  transitional.^ 
Without  attempting  a  description  of  these  schemes 
we  may  call  attention  to  their  essential  aims  and 
principles  so  far  as  these  have  been  developed  in 
practice.  In  establishing  a  particular  scheme  the 
services  of  an  actuary  are  indispensable.  In  the  ab- 
sence of  legal  obligation  and  uniform  regulation  the 
scope  of  experiment  and  speculation  is  at  this  stage 
very  wide,  and  no  common  principle  of  interest  or 
duty,  public  or  private,  has  been  accepted  in  Amer- 
ica;  while  Germany  and  Great  Britain  have  formu- 
lated their  national  purpose  and  embodied  it  in  a 
system  on  an  actuarial  basis. 

It  is  claimed  by  some  critics  that  the  employee 
suffers  a  loss  of  wages  in  accepting  a  pension  scheme, 
but  gains  no  contractual  right  in  the  fund.  This 
criticism  requires  examination.  In  those  schemes  in 
which  the  employee  pays  no  premium,  the  corpora- 
tion providing  the  entire  fund,  the  former  does  not 
suffer  a  loss  of  wages.  In  certain  schemes  where 
the  employee  is  a  contributor  he  is  repaid  with  inter- 
est all  he  has  paid  or  the  greater  part  thereof  in 
case  he  leaves  the  position  for  any  cause;  and  in 
this  situation  he  suffers  no  deduction  from  his  wages. 
In  the  schemes  where  the  employee  is  compelled  to 
pay  part  of  the  premium  and  does  not  acquire  any 

^  C.  R.  Henderson :  Industrial  Insurance  in  the  United 
States,  and  literature  there  cited.     Bureau  of  Labor  Report. 

Seager:     Social  Insurance. 

I.  Rubinow:  American  Economic  Review,  June,  1913,  pp. 
287-295. 


Citizens  in  Industry 


contractual  claim  on  the  fund  which  he  has  helped 
to  create  there  is  manifest  injustice  which  demands 
legal  correction.^ 

A  satisfactory  system  must  not  lower  wages,  and 
must  guarantee  to  each  employee  all  to  which  he 
is  in  equity  entitled.  The  fund  should  be  based  on 
actuarial  calculations,  should  be  independent  of  the 
financial  fortunes  of  the  company  and  should  be 
adequate  each  year  for  the  claims  of  the  year.  If 
the  employee  dies  or  leaves  the  service  before  the 
age  when  he  is  entitled  to  full  pension,  his  just  expec- 
tations should  be  met  by  such  partial  payments  as 
may  be  reasonable;  and  all  the  provisions  should  be 
known  and  published  from  the  beginning. 

^Benefit  Funds. — W.  L.  Chandler:  "The  Use  of  Benefit 
Funds  Among  Factory  Employees."  The  Dodge  Idea,  Mar., 
1913,  p.  1070. 

Statistics  "compiled  from  over  five  hundred  benefit  funds 
in  the  United  States  and  a  few  in  Canada." 

Thirty  per  cent,  of  funds  receive  regular  contributions 
from  the  establishments,  "but  this  seemingly  has  only  the 
effect  of  lowering  the  cost  to  members,  as  no  reasons  are 
apparent  why  they  cannot  all  be  self-sustaining."  Member- 
ship of  all  funds  averaged  48  per  cent,  of  total  number  of 
employees.  Xinety-three  per  cent,  of  funds  provide  benefits 
for  temporary  disability  due  to  sickness.  Of  all  funds  (com- 
prising about  350,000  members)  the  average  cost  per  mem- 
ber for  one  year  for  temporary  disability  due  to  sickness 
and  accidents  combined  (sickness  and  accident  cases  not 
reported  separately)  was  $3.42.  Ninety  per  cent,  of  funds 
pay  benefits  for  temporary  disability  due  to  accidents. 
Twelve  per  cent,  of  all  funds  pay  benefits  for  permanent 
disability,  and  one-third  of  these  apply  the  benefits  to  cases 

158 


Economic  Inducement  to  Efficiency 


But  at  least  during  this  transition  from  private  to 
public  systems  we  cannot  ignore  the  value  of  the 
principle  "that  an  employee  who  has  given  faithful 
and  long  service  to  his  employers,  has  given  a  kind 
of  service  for  which  he  has  not  been  fully  compen- 


due  to  sickness  as  well  as  accidents.  Of  the  funds  paying 
benefits  for  permanent  disability  34  per  cent,  of  members 
received  such  benefits  in  one  year.  Average  cost  per  mem- 
ber covering  both  sickness  and  accident  for  the  year  was 
48  cents. 

Twelve  per  cent,  of  funds  give  benefits  for  permanent 
disability  due  to  accident.  Eighty-three  per  cent,  of  funds 
provide  benefit  for  death  of  a  member,  due  to  sickness. 
Amount  varies  from  $10  to  $1,000.  Average,  $209.76. 
Ninety  per  cent,  of  funds  provide  benefit  for  death  of  a 
member  due  to  accident.  Twenty-two  per  cent,  have  bene- 
fits for  death  of  members'  wives.  Ten  per  cent,  have  bene- 
fits for  death  of  other  dependents.  Very  few  funds  make 
any  distinction  between  salaried  employees  and  day  work- 
ers. All  funds  provide  different  classes  of  membership  based 
on  sex.  Of  total  membership  of  all  funds,  10  per  cent,  are 
females.  Of  members  of  funds  reporting  female  members, 
II  per  cent,  are  females.  Of  funds  managed  by  employees 
only  30  per  cent,  of  employees  were  members.  Of  those 
managed  by  establishment,  75  per  cent,  were  enrolled.  Of 
those  managed  jointly,  66  per  cent,  were  enrolled.  Fifteen 
per  cent,  had  more  or  less  compulsory  membership. 

W.  L.  Chandler:  Views  and  Questions  in  Benefit  Fund 
Discussion.  The  Dodge  Idea,  June,  1913,  p.  1154.  Eighty 
per  cent,  of  funds  managed  by  employees  have  entrance 
fees.  Forty  per  cent,  of  funds  under  joint  management  have 
entrance  fees.  One  under  establishment  rule  has  entrance 
fee.  Fees  range  from  5  cents  to  $10.00;  $1.00  the  most 
common,  50  cents  next.    Two-thirds  have  assessments. 


Citizens  in  Industry 


sated  in  his  weekly  or  his  monthly  pay  envelope."  ^ 
Why  should  not  pay  for  this  unpaid  service  be  added 
to  the  regular  wages?  It  cannot  be  added  there  for 
the  simple  reason  that  you  cannot  know  whether  a 
man  renders  "long  and  faithful"  service  until  he  has 
done  it.  All  know  that  "long  and  faithful"  service 
is  worth  more  than  brief,  uncertain  and  disloyal 
service;  but  the  pay  of  the  extra  value  ought  not 
to  be  given  until  the  time  Is  past  and  the  test 
endured. 

It  may  be  objected  to  this  reasoning  that  Invalid 
and  old-age  pensions  should  be  required  by  law  of 
all  employers  and  not  be  dependent  on  a  workman's 
continuance  all  his  life  with  the  same  employer. 
Granting  this  as  sound,  we  yet  hold  to  the  "service 
annuity"  idea  expressed  above;  something  should  be 
voluntarily  added  to  the  legal  pension,  since  it  Is 
earned  In  a  special  and  personal  relation.  Here  is 
another  example  where,  even  under  compulsory  old- 
age  pension  laws,  there  will  be  room  for  voluntary 
and  special  acts  of  equity  and  philanthropy. 

But  If,  as  men  approach  the  age  when  the  pen- 
sion Is  expected,  they  are  discharged  for  weakness, 
or  on  some  other  pretext,  the  whole  system  will  be 
defeated;  for  its  value  as  an  incentive  to  fidelity  and 
loyalty  depends  on  the  general  belief  in  the  sincerity 
of  the  managers.  Doubt  might  be  set  at  rest  in 
part  by  guaranteeing  at  least  an  equitable  pension 
after  a  certain  long  period  of  service,  even  if  weak- 

^  Mr.  Arthur  Williams  in  Bui.  6,  Xational  Association  of 
Corporation  Schools. 

I  60 


Economic  Inducement  to  Efficiency 

ness  or  unfaithfulness  made  it  necessary  to  discharge 
the  person  at  the  stage  where  strength  begins  to 
fail.  The  complaints  on  this  subject  are  so  numer- 
ous and  well  founded  that  they  cannot  be  ignored. 
Perhaps  the  evil  cannot  be  corrected  without  legis- 
lation. 

In  Germany,  where  social  insurance  is  obligatory 
(compulsory),  it  would  seem  that  no  further  provi- 
sion need  be  made  by  employers  for  disasters  to 
workmen  and  their  families.  But  an  imperial  or 
federal  law  must  be  based  on  averages  and  cannot 
take  into  account  individual  and  special  require- 
ments. The  proprietor,  having  direct  relations  with 
a  group  of  workers  whose  local  and  even  domestic 
condition  is  known  to  him,  can  always  find  some 
local  defect  in  the  working  of  a  general  law  which 
he  can  correct.  It  may  be  the  pension  is  too  small 
for  certain  large  families,  or  homes  where  there  has 
been  prolonged  sickness  with  heavy  expenses;  or 
mechanical  appliances  recommended  by  the  physi- 
cian may  be  too  costly  for  the  family  means,  as 
trusses  or  spectacles;  or  a  period  in  the  mountain  or 
by  the  sea  may  be  desirable  for  convalescents;  or  a 
faithful  employee  may  become  disabled  before  the 
age  when  pension  begins;  or  a  widow  and  her  chil- 
dren may  not  have  claim  on  a  pension  for  a  similar 
reason.  In  these  and  similar  situations  room  is  left 
for  personal  generosity  beyond  the  bare  letter  of 
the  law.  Doubtless  when  obligatory  insurance  is 
general  in  the  United  States  there  will  still  be  many 
opportunities  to  manifest  a  human  interest, 

i6i 


Citizens  in  Industry 


Concerning  old-age  annuities  Louis  Brandeis  sug- 
gests another  aspect  of  an  argument:  "Economic- 
ally, the  superannuation  provision  may  be  consid- 
ered as  a  depreciation  charge.  Every  prudent  manu- 
facturer makes  an  annual  charge  for  the  deprecia- 
tion of  his  machines,  recognizing  not  merely  phys- 
ical depreciation,  but  lessened  value  through  obsoles- 
cence. He  looks  forward  to  the  time  when  the 
machine,  though  still  in  existence,  and  in  perfect  re- 
pair, will  be  unprofitable,  and  hence  must  be  aban- 
doned. This  annual  charge  for  depreciation  he 
treats  as  a  necessary  expense  of  the  business."  Old 
age  and  invalidity  must  ever  be  regarded  as  neces- 
sary elements  in  the  upkeep  of  the  human  instru- 
ments of  production. 

Life  Insurance  {death  benefits). — One  device  is 
worth  recording:  the  employing  corporation  makes  a 
contract  with  a  reputable  life-insurance  company; 
asks  the  employees  to  authorize  the  deduction  from 
the  wages  at  each  payment  sufficient  to  cover  the 
premium;  and  thus  the  policy  is  kept  alive.  The 
insurance  is  quite  independent  of  any  reverses  of 
the  employers. 

Fines. — It  is  generally  believed  by  employers  and 
accepted  by  employees,  at  least  in  many  branches  of 
manufacture  and  trade,  that  disciplinary  measures 
are  necessary.  Under  the  ancient  apprenticeship 
system  the  young  workman  could  be  punished  with 
the  rod;  that  is  no  longer  possible,  unless  the  father 
chooses  to  resort  to  this  method  at  home  to  cure  a 
lazy  son.     The  fine  is  the  only  disciplinary  measure 

162 


Economic  Inducement  to  Efficiency 

available,  and,  as  it  touches  the  income,  it  is  keenly 
and  quickly  felt. 

At  the  same  time,  if  fines  are  paid  to  the  employer 
he  has  a  manifest  and  direct  interest  in  making  them 
as  high  as  possible;  and  even  if  he  is  impartial  he  is 
sure  to  be  suspected.  If  the  fine  is  levied  and  col- 
lected promptly,  a  careful  record  kept,  and  the 
amounts  received  are  put  into  a  fund  for  sickness 
and  accident  insurance,  the  benefits  of  which  all  em- 
ployees share,  the  sense  of  justice  is  not  offended, 
the  employer  is  not  hated  or  suspected,  and  the 
desirable  disciplinary  effect  is  fully  secured  without 
waste  of  friction  and  ill-will. 

Security  of  Position;  Rights  of  Employees  in  the 
Business. — For  many  years  wage-earners  have 
groped  for  some  expression  of  their  feeling  that  men 
who  have  spent  years  in  learning  a  trade  and  in 
serving  a  certain  firm  or  corporation  acquire  some 
sort  of  a  claim  to  security  of  tenure.  In  public  em- 
ployment this  principle  is  openly  avowed;  the 
"spoils  system"  with  its  arbitrary  methods  of  select- 
ing and  discharging  employees  has  gradually  suc- 
cumbed to  the  "merit  system"  which  selects,  retains 
and  promotes  public  servants  on  examination,  proba- 
tion and  continued  evidence  of  efficiency  in  the  posi- 
tions. It  was  natural  that  the  same  principle  should 
be  applied  to  the  service  of  private  parties,  espe- 
cially of  corporations  created  by  charter  of  the 
commonwealth — hence  the  frequently  recurring 
phrase,  "a  man's  right  to  his  job,"  and  the  intense 
hatred  of  the  "scab"  and  the  "strike-breaker."    Gen- 

163 


Citizens  in  Industry 


erally  employers,  still  under  the  influence  of  the  In- 
dividualistic theory  of  liberalism  and  laissez-faire 
policies,  have  resolutely  and  vigorously  fought  this 
idea  and  contended  that  they  had  the  absolute  right 
to  discharge  without  notice  and  without  giving  any 
explanation,  just  as  employees  may  quit  the  employ- 
ers. It  must  be  confessed  that  if  the  right  of  wage- 
earners  to  their  job  is  recognized  there  must  be  a 
corresponding  recognition  of  duties,  and  men  gen- 
erally see  their  rights  before  they  discover  their 
duties. 

At  any  rate,  many  capitalist  managers  have  been 
turning  over  the  subject  in  their  minds,  have  them- 
selves felt  the  hardships  of  insecure  tenure  of  places, 
the  wastes  of  anxiety,  the  perils  of  suspense  and  the 
atmosphere  of  suspicion,  and  have  themselves 
groped  for  a  remedy.  The  various  pension  schemes 
are  substantial,  if  only  partial,  evidence  of  this  feel- 
ing. The  sale  of  stock  shares  to  employees  on 
favorable  terms  is  another  sign.  The  system  of 
unemployment  insurance,  already  in  operation  in 
Great  Britain,  will  be  one  of  the  methods  of  giving 
to  this  new  claim  legal  force  and  precise  definition. 

The  Honorable  Seth  Low,  distinguished  repre- 
sentative of  the  best  political  and  commercial  ten- 
dencies, has  given  this  almost  instinctive  feeling  an 
articulate  expression  in  prophetic  words: 

"There  has  grown  up  very  widely  among  em- 
ployees the  feeling  that  the  men  who  put  labor  into 
a  railroad  system,  or  into  any  other  vast  industrial 
plant,  help  to  create  that  system  just  as  truly  as  the 

164 


Economic  Inducement  to  Efficiency 

men  who  put  their  money  into  it;  and  out  of  this 
belief  there  has  grown  and  is  growing  a  constantly 
strengthening  conviction  that  those  who  work  for 
such  an  enterprise  acquire  a  property  right  in  it  just 
as  real  as  the  property  right  of  those  who  embark 
capital  in  it.  The  problem  of  modern  industry,  so 
far  as  it  relates  to  the  relation  of  the  employer  and 
employee,  seems  to  be  to  discover  the  just,  and 
equitable,  and  practical  way  of  reconciling  these  two 
claims  to  property  right  in  modern  industry.  As 
long  as  business  enterprises  were  under  individual 
management,  it  was  not  unnatural  for  a  man,  whose 
energy  built  up  the  enterprise  and  whose  entire  for- 
tune had  been  at  risk  in  developing  it,  to  feel  that 
it  was  his  business.  Neither  was  this  claim  seriously 
disputed  by  labor  under  old  conditions.  But  the 
situation,  evidently,  is  entirely  changed  when  an 
enterprise  is  financed  by  tens  of  thousands  of  stock- 
holders who  give  no  time  or  thought  whatever  to 
its  conduct,  and  when  its  affairs  are  administered  not 
by  the  people  who  finance  it,  but  by  salaried 
officials."  1 

It  is  perfectly  clear  that  an  absolute  denial  of  any 
claim  to  permanency  of  employment  on  the  part  of 
employers  will  increase  the  momentum  of  Socialism, 
because  the  workmen  can  see  that  under  Socialism 
their  tenure  of  office  would  be  as  secure  as  that  of 
government    officials    Is    now    under    a   good    merit 

^  Annals  of  American  Academy,  Nov.,  1912,  100  ff.  Cf. 
article  by  Prof.  A.  W.  Small,  American  Journal  of  Sociol- 
ogy, May,  1914,  xix,  721  ff. 

165 


Citizens  in  Industry 


system.  Perhaps  they  do  not  so  easily  appreciate 
the  fact  that  any  system  which  guarantees  security 
of  employment  must  involve  a  severity  and  rigor  of 
social  control  of  individual  action  now  unknown; 
there  is  always  a  conflict  between  personal  liberty 
and  comfort  or  ease.  The  extent  of  that  disad- 
vantage is  subject  to  the  speculations  of  prophecy 
and  cannot  be  scientifically  calculated  from  any  data 
yet  available.  Meantime  the  most  sagacious  man- 
agers will  discover  by  experiment  practical  methods 
of  diminishing  the  terrors  of  insecurity,  of  making 
men  feel  that  only  for  imperative  reasons  need  the 
workmen  fear  discharge.  This  experimentation  will 
lead  ultimately  to  a  great  system  of  cooperation  be- 
tween employers,  on  a  national  scale,  and  through 
federal  organization,  to  diminish  these  heartbreak- 
ing and  demoralizing  periods  of  unemployment,  and 
when  this  is  impossible  to  provide  unbroken  Income 
until  employment  can  be  furnished. 

Private  pension  plans,  however  generously  con- 
ceived, have  disadvantages.  They  are  created  only 
in  a  few  cases,  and  there  is  no  legal  assurance  of 
their  extension.  Usually  the  entire  cost  Is  borne 
by  the  employers  and  this  gives  them  the  right  to 
fix  the  terms  of  enjoyment.  Whatever  may  be  the 
Intention,  the  necessary  practical  effect  Is  subordina- 
tion, even  subjection,  of  the  employee  to  the  cor- 
poration. One  conspicuous  Instance  is  reported: 
"In  order  to  enjoy  Its  benefits,  the  men  must  have 
served  twenty  years  continuously  in  the  employ  of 
the  corporation  or  of  one  of  its  subsidiaries.    This 

i66 


Economic  Inducement  to  Efficiency 

effectively  prevents  any  stoppage  of  work  as  a  pro- 
test against  anything  considered  unjust  by  the  work- 
men, if  they  would  keep  their  record  such  as  to 
enable  them  to  draw  the  pension  in  their  old  age. 
There  is  nothing  in  it  to  protect  a  man  excepting  his 
subservience  to  his  superior  officers,  and  the  nearer 
he  approaches  toward  twenty  years  of  continuous 
service,  the  greater  his  subservience  may  conceivably 
be,  for  he  might  be  discharged  at  the  end  of  nineteen 
years  and  eleven  months  and  his  right  to  the  pension 
would  be  forfeited."  ^ 

In  some  so-called  "profit-sharing"  schemes  the 
bonus  on  stock  is  not  received  as  a  right  but  is  paid 
only  to  those  whom  the  executive  officials  of  the 
company  consider  loyal. 

In  the  German  system  the  pension  does  not  de- 
pend upon  private  favors  but  upon  a  well-defined 
legal  right,  a  right  which  may  be  transferred  from 
one  place  of  employment  to  another.  Under  a  mo- 
narchical form  of  government  free  and  independent 
citizenship  is  in  this  matter  better  protected  than  in 
this  "land  of  the  free." 

^  John  A.  Fitch :  Article  in  Annals  of  American  Acad- 
emy, July,  1912,  10  ff. 


CHAPTER    IV 

METHODS  OF  IMPROVING  THE  CONDITIONS  OF   HOME 
LIFE   OF   EMPLOYEES 

Family  and  Home  of  Employees. — "A  man's 
house  is  his  castle"  is  a  proverb  which  expresses  the 
ethical  and  legal  independence  of  a  citizen's  home. 
It  would  seem  that  any  hint  of  interference  with 
domestic  affairs  would  array  against  the  most  benev- 
olent employer  the  hostility  of  those  who  are  af- 
fected. Generally  this  would  be  true,  and  the  em- 
ployers have  felt  that  they  had  no  right  to  invade 
this  sanctuary  for  any  purpose.  In  large  cities 
where  the  work-people  are  scattered  in  all  directions 
and  may  come  from  any  quarter  the  employers  can 
have  little  influence  on  the  domestic  conditions  of 
their  employees. 

But  there  are  situations  where  the  company  prac- 
tically controls  the  dwellings  of  the  workers,  and 
here  they  have  a  duty  and  cannot  evade  a  respon- 
sibility. Frequently  a  great  firm  will  buy  a  large 
tract  of  land  on  which  to  establish  a  manufacturing 
establishment,  yet  there  will  be  no  accessible  houses 
for  the  families.  To  leave  the  construction  and 
arrangement  of  homes,  streets,  parks  and  public 
spaces  to  the  unorganized  throng  of  strangers  would 

i68 


Improving  the  Home  Life 

be  to  Invite  disaster.  The  possession  of  power, 
resources  and  talent  Involves  a  corresponding  obliga- 
tion. There  Is  also  a  definite  personal  and  pecuniary 
interest  at  stake  on  the  part  of  the  managers,  direc- 
tors and  stockholders,  for  the  health,  morality,  con- 
tentment and  good-feeling  of  the  people  are  an 
asset  of  appreciable  importance. 

The  Impulse  of  humanity,  the  pride  of  the  master, 
the  incentive  of  security  for  property  and  gain,  blend 
in  the  amalgam  motive  that  Inspires  the  charming 
industrial  towns  which  have  been  created  by  strong 
captains  of  industry  both  in  Europe  and  America. 

Should  the  dwellings  be  rented  or  owned  by  the 
worklngmen?  On  this  question  there  Is  dispute 
both  In  Europe  and  America.  The  problem  varies 
with  the  situation  and  with  the  group. 

When  there  is  probability  of  permanent  employ- 
ment there  are  great  advantages  in  encouraging 
ownership.  The  habit  of  thrift  Is  stimulated  by  the 
hope  of  securing  a  home.  Men  are  more  likely  to 
be  sober,  steady,  industrious  and  faithful  If  they  own 
visible  property. 

Unfortunately  multitudes  of  wage-earners  have 
no  assurance  of  permanent  employment,  and  if  they 
buy  a  dwelling  and  place  a  mortgage  on  it  to  cover 
the  debt  incurred  by  purchase  they  may  lose  all.  If 
they  move  away  the  property  must  sometimes  be  put 
on  the  market  at  forced  sale  and  disposed  of  at  a 
sacrifice.  If  the  owners  do  not  occupy  the  house  it 
may  be  ruined  by  careless  tenants.  Furthermore,  a 
man  who  owns  his  house  has  given  a  hostage  to  his 

169 


citizens  in  Industry 


employer  and  is  not  so  independent  in  the  assertion 
of  his  claims  in  case  of  strikes. 

From  the  standpoint  of  the  employing  corpora- 
tion, objections  to  individual  ownership  are  raised. 
It  may  be  impossible  to  plan  the  area  of  building 
so  as  to  secure  proper  recreation  grounds,  play 
spaces,  public  baths  and  laundries,  gardens  and  cor- 
rect style  of  architecture.  Each  owner  will  follow 
his  own  taste  and  be  governed  by  the  amount  he 
can  invest,  and  the  result  is  ugliness,  disorder,  incon- 
venience and  insanitary  arrangements.  The  work- 
man who  is  trying  to  pay  off  the  debt  on  his  house 
by  installments  is  sorely  tempted  to  crowd  his  best 
rooms  with  lodgers,  a  constant  menace  to  the  health 
and  morals  of  the  family. 

The  Dwelling  a  Primary  Necessity  of  Life.^ — 
Next  to  food  the  primary  necessity  of  life  Is  the 
dwelling.  Those  who  are  seeking  the  conditions  of 
highest  efficiency  in  the  shop  will  find  some  of  the 
most  important  of  them  in  the  home.  If  the  money- 
maker has  an  ambition  to  be  a  good  citizen  he  will 
give  as  serious  attention  to  the  habitations  of  his 
employees  as  to  the  roof  of  his  mill.  The  capitalist 
manager  has  intelligence  and  influence,  and  he  is 
under  obligation  to  use  his  power  as  a  citizen  for 
the  benefit  of  those  who  make  his  capital  productive. 
If  a  corporation  discovers  that  its  employees  are 
living  in  houses  which  are  condemned  by  the  stand- 
ards of  physiology,  by  the  esthetic  standards  of  re- 

'^  See  Mrs.   Albion   Fellows   Bacon:     What   Bad  Housing 
Means  to  a  Community,  and  Beauty  for  Ashes. 

170 


Improving  the  Home  Life 

fined  people,  and  by  the  moral  standard  of  the 
decent,  It  should  secure  legislation  and  administra- 
tion which  will  correct  abuses  and  compel  landlords 
to  conform  to  the  requirements  of  modern  science. 
There  would  be  less  need  of  "professional  reform- 
ers" and  less  need  of  abusing  them  for  impertinent 
interference,  if  those  who  control  property  had  a 
more  enlightened  conscience  in  regard  to  their  civic 
responsibilities.  In  some  cases  the  companies  own 
the  houses  in  which  their  miners  or  other  laborers 
are  compelled  to  reside;  and  then  their  responsibility 
is  all  the  more  direct. 

If  any  unscrupulous  owner  of  uninhabitable 
houses  wishes  to  sleep  of  nights  he  is  hereby  faith- 
fully warned  to  place  on  his  expurgated  list  of  books 
"The  Peril  and  the  Preservation  of  the  Home,"  by 
Jacob  Riis,  humorist,  reformer,  optimist,  saint,  of 
blessed  memory.  It  was  he  who  thought  the  chief 
interest  in  a  habitation  is  the  kind  of  character  it 
produces.  "A  pigsty,  in  time,  will  make  a  pig  even 
of  man  who  is  made  in  the  image  of  God.  You 
can  degrade  him  to  that  level,  if  you  try  hard  enough 
and  are  willing  to  pay  the  price."  He  will  tell  us 
what  to  think  of  men  who  send  agents  to  collect 
40  per  cent,  profits  from  hovels  and  spend  the  money 
on  European  travel,  costly  pictures,  and  endless 
luxuries. 

Correction  of  these  housing  evils  is  a  matter  of 
conscience  and  will. 

Benefits  of  Improved  Housing. — The  experience 
of  Liverpool,  England,  Is  a  striking  proof  of  the 

171 


Citizens  in  Industry 


spiritual  value  of  Improving  the  outward  conditions 
of  domestic  life.  During  the  earlier  years  of  the 
last  century,  under  a  social  philosophy  of  negligence, 
that  city,  which  was  growing  In  wealth  and  fame, 
permitted  Its  dock  laborers  to  Inhabit  dwellings 
which  were  repulsive  to  sight,  dangerous  to  health, 
destructive  of  morals.  Landlords  reaped  fortunes 
while  humanity  decayed,  and  only  the  most  vigorous 
agitation  aroused  the  authorities  to  action.  The 
owners  and  employers  would  do  nothing  of  their 
own  motion,  and  the  municipality  was  compelled  to 
take  possession  of  a  large  district.  It  built  decent 
little  cottages  in  rows,  with  play  spaces  between, 
and  transferred  the  inhabitants  of  the  deadly  shacks 
to  more  decent  quarters.  In  1864  there  were 
22,000  insanitary  dwellings  in  the  city.  After  the 
new  policy  was  carried  out  for  some  time  the  death 
rate  declined  from  50  to  27  per  1,000;  deaths  from 
tuberculosis  from  4  to  1.9;  typhus  fever,  once  preva- 
lent, disappeared  entirely;  typhoid  fever  from  1,300 
cases  in  1896  to  200  cases  in  191 1.  The  police 
prosecutions  fell  50  per  cent.^ 

A  Suburban  Plan. — In  19 10  the  Liverpool  Suburb 
Tenants,  Limited,  was  organized.  It  leased  180 
acres  on  the  Marquis  of  Salisbury  estate  for  999 
years.  One  acre  in  every  ten  was  reserved  for 
open  spaces;  eleven  houses  were  built  per  acre; 
1,800  houses  for  7,000  persons.  The  streets,  thirty- 
six  to  eighty  feet  wide,  were  lined  with  trees.  Lawns 
for  tennis  players,  and  bowling  greens,  children's 
^  The  American  City,  Apr.,  191 3,  pp.  429-430. 

172 


Improving  the  Home  Life 

playground  with  swings  and  other  apparatus  were 
included  in  the  plan. 

Conditions  of  Successful  Plans. — Certain  condi- 
tions must  be  observed  by  all  those  who  attempt  to 
provide  "model"  dwellings  for  working  people. 
The  rental  must  be  low  enough  for  the  members  of 
the  group  to  pay,  since  the  cost  of  shelter  must  not 
exceed  a  definite  part  of  the  Income.  The  studies 
of  family  budgets  thus  far  do  not  enable  us  to  fix 
this  ratio  with  exactness.  A  second  condition  of 
keeping  the  dwellings  in  sanitary  condition  is  some 
provision  for  constant  supervision  and  control. 
Furthermore,  when  decent  habitations  have  been 
built  the  well-paid  artisans  are  inclined  to  take  them, 
fresh  and  clean,  and  crowd  out  the  poor  laborers  for 
whom  they  were  provided.  Many  schemes  have 
come  to  grief  at  this  point. 

Standard  for  Dwellings. — Requirements  for  shel- 
ter cannot  be  so  exactly  stated  as  those  for  food. 

Dr.  Chapin  ^  reaches  the  conclusion  that  a  family 
requires  at  least  one  room  to  every  one  and  a  half 
persons.  But  the  arrangements  for  light,  ventilation, 
exclusion  of  lodgers,  sanitary  appliances,  care  of 
courts,  proximity  of  playgrounds  and  other  factors 
must  also  be  studied  in  connection  with  a  standard. 

In  the  Port  Sunlight  village  ^  no  house  has  less 

^  R.  C.  Chapin :    The  Standard  of  Living,  p.  i8. 

S.  Nearing:    Financing  the  Wage  Earner's  Family,  p.  73. 

2  W.  L.  George :  Laborer  and  Housing  at  Port  Sunlight 
(1909),  72  ff.  This  book  contains  many  technical  descrip- 
tions of  arrangements. 


Citizens  in  Industry 


than  five  rooms,  three  of  which  are  bedrooms.  Mr. 
George  says:  "If  the  Port  Sunhght  system  is  to 
solve  the  housing  problem,  It  will  be  because  It  has 
accepted  and  exceeded  the  four-room  standard,  with- 
out which  it  Is  difficult  for  a  family  to  be  brought 
up,  I  do  not  say  under  good  sanitary  conditions 
.  .  .  but  in  such  a  manner  as  to  fit  its  members  to 
take  their  place  among  those  that  are  clean  In  mind 
and  soul."  And  after  describing  the  depraving  con- 
ditions of  crowding  in  London  and  other  cities  he 
adds:  "Their  fate  Is  to  be  subjected  from  their 
childhood  upward  to  the  foulest  temptations  and 
examples,  to  be  herded  together  irrespective  of  age 
or  sex,  untaught  and  unshepherded,  to  be  taunted  in 
after  years  with  their  moral  degradation  by  the 
middle-class  authors  of  their  misery.  We  know  or 
should  realize  that  at  the  root  of  all  forms  of  vice, 
particularly  drunkenness,  lies  the  problem  of  hous- 
ing; evil  conditions  mean  depression,  and,  for  the 
slag  of  a  social  system,  the  only  resource,  fleeting 
but  efficacious,  is  the  public-house,  and  its  costly 
hospitality."  ^  The  claim  is  made  for  the  Port 
Sunlight  experiment  that  It  has  reduced  intemper- 
ance. One  of  the  first  effects  of  twenty  years  of 
good  housing  has  been  a  deep  and  probably  radical 
transformation  of  habits  said  to  be  hereditary,  but 
due  In  reality  to  an  apparently  hopeless  combina- 
tion of  evils.  Cleanliness  accompanies  sobriety; 
illegitimacy  Is  rare;  no  drunkenness,  no  deserted 
wives  and  children,  no  wife  beating,  no  Immorality; 
^  See  Charles  Kingsley :     Yeast. 


Improving  the  Home  Life 

increased  deposits  in  the  savings  banks;  low  rate  of 
infant  mortality,  which  is  the  best  indication  of 
wholesome  conditions  and  habits;  regular  school 
attendance  of  the  children. 

In  the  celebrated  town  built  up  by  the  Krupp 
Company  near  Essen,  Germany,^  the  corporation 
laid  out  the  area,  planned  the  buildings,  and  ar- 
ranged the  common  services.  In  this  case  the  firm 
could  command  sufficient  capital  to  make  plans  on 
a  grand  scale,  to  build  many  dwellings  at  the  lowest 
cost  per  room,  and  to  command  the  services  of  the 
best  architects.  The  houses  are  rented  under  con- 
tracts which  permit  control  by  supervisors,  in  order 
to  keep  out  persons  and  families  which  are  disagree- 
able, disorderly,  immoral,  or  where  children  are 
not  under  eflScient  domestic  discipline.  Sanitary  con- 
ditions are  supervised  and  evils  promptly  corrected. 
These  regulations  may  be  felt  as  an  unwarranted 
invasion  of  personal  liberty;  but  those  who  do  not 
like  order  and  cleanliness  are  at  liberty  to  go  fur- 
ther and  do  worse,  outside.  As  a  matter  of  fact 
the  demand  is  said  to  go  before  the  supply 
and  only  families  who  have  worked  some  years 
for  the  firm  can  be  accommodated.  The  work- 
men are  near  to  their  work  and  are  not  ex- 
hausted by  long  tramps  between  their  homes  and 
the  mill. 

Legal  Obstacles. — The  laws  relating  to  corpora- 
tions are  occasionally  found  in  conflict  with  the  plans 

^  W.  Kley :  Bei  Krupp,  eine  socialpolitische  Reiseskizze 
(1899). 


Citizens  in  Industry 


to  provide  dwellings  for  employees  through  coop- 
erative arrangements. 

Thus  in  Illinois  the  Pullman  Company,  formed 
primarily  for  the  purpose  of  manufacturing  cars, 
built  a  model  town  for  the  residence  of  the  work- 
men's families.  After  many  years,  upon  trial  of  a 
test  case,  the  Supreme  Court  of  the  state  compelled 
the  company  to  dispose  of  its  ownership  and  control 
of  this  property,  on  the  ground  that  it  had  not  been 
given  the  right  in  its  articles  of  incorporation  to 
engage  in  the  business.^ 

Another  legal  obstacle  has  been  raised  by  the 
fear  in  America  lest  lat'ifimdia  or  "bonanza"  tracts 
shall  be  owned  by  capitalists,  perhaps  by  foreigners, 
and  thus  a  race  of  serfs  be  created  and  have  no 
power  to  purchase  homesteads  near  where  they  must 
work.  In  consequence  of  this  fear,  there  are  laws 
which  forbid  the  acquisition  of  land  for  the  erection 
of  garden  villages  on  even  a  philanthropic  or  coop- 
erative basis.  In  making  plans  these  legal  difficulties 
must  be  carefully  considered  in  advance,  as  the  Pull- 
man case  shows. 

Cooperation  zvith  Municipalities. — In  the  crowded 
quarters  of  manufacturing  towns  the  effort  to  im- 
prove dwellings  cannot  be  made  a  separate  issue. 
Nevertheless  all  rational  motives  impel  wise  man- 
agers to  cooperate  in  the  general  plans  of  better- 
ment made  by  the  municipality  or  state.  The  capi- 
talists as  a  permanent  class  have  a  common  interest 
in   the    rearing   of   generations   of   laborers   under 

^  People  ex  rcl.  Maloney's  Pullman  Co..  175  111.  125. 

176 


Improving  the  Home  Life 

wholesome  conditions,  and  their  Influential  coopera- 
tion with  public  authorities  is  in  the  highest  degree 
socially  desirable. 

One  method  of  providing  homes  is  that  of  form- 
ing a  real-estate  company  which  lays  out  a  tract  of 
land  under  the  direction  of  landscape  artists,  engi- 
neers and  architects,  builds  cottages  with  pleasing 
and  varied  architecture,  plants  trees,  and  then  sells 
to  the  workmen  on  easy  terms.  In  such  cases  the 
purchaser  must  have  assurance  that  if  he  leaves  the 
service  of  the  company  his  investment  and  tenure 
will  not  be  placed  in  jeopardy.  An  intelligent  man 
does  not  like  to  feel  that  his  ownership  may  involve 
him  in  a  degree  of  servile  dependence. 

Perhaps  welfare  work  shines  nowhere  else  with 
brighter  luster  than  in  those  industrial  villages 
where  families  can  have  a  little  space  of  their  own, 
a  garden  for  congenial  occupation  and  enjoyment 
of  the  fruits  of  family  cooperation,  and  access  to  the 
refined  pleasures  of  a  decent  and  rational  existence. 

Experience  has  shown  that  many  families,  even 
when  accustomed  to  the  excitement  of  the  crov/ded 
city,  are  willing  to  escape  from  the  smoke,  grime 
and  friction  of  the  tenements  if  they  can  be  sure  of 
a  suburban  home  where  the  children  have  elbow- 
room  without  fighting  for  It  with  each  other  and 
with  the  policemen.  The  denizen  of  the  metropolis 
rarely  likes  the  solitude  and  deadly  quiet  of  an  Iso- 
lated farm;  but  he  may  be  enticed  halfway  to  the 
land.  If  he  does  not  thereby  lose  touch  with  his 
fellows. 

177 


Citizens  in  Industry 


The  tenement  house  Is,  for  economic  reasons,  a 
necessity  In  cities,  and  yet  It  cannot  be  made  a  normal 
habitation  for  a  family,^  even  with  the  aid  of  a  brief 
summer  outing  In  the  country.  The  improvement  in 
physique  and  In  all  that  depends  on  this  must  be 
sought  chiefly  in  rearrangement  of  suburban  and 
small  town  industries  so  as  to  give  more  space  for 
homes,  and  a  little  opportunity  for  the  primitive 
industry  of  gardening. 

When  a  town  is  built  to  order  and  on  separate 
territory  it  must  be  complete;  nothing  can  be  left  to 
chance.  The  dwellings  must  be  protected  against 
the  encroachment  of  work-places  with  their  smoking 
chimneys,  their  masses  of  raw  materials,  their  utili- 
tarian lines  of  structure,  their  insistent  suggestions 
of  painful  toil.  The  mills  and  factories  must  be 
restricted  to  the  areas  set  apart  for  them  at  a  proper 
distance  from  homes.  The  streets  are  not  ready  for 
use  without  planting  of  trees,  breadths  of  green 
sward  and  neat  pavements  and  walks.  A  little  space 
for  flowers,  shrubs  and  gardens  must  be  in  the  plans. 
At  Intervals  playgrounds  for  the  children  are  re- 
served and  equipped.  "No  child  to  be  more  than 
five  minutes'  walk  from  a  playground,"  is  an  English 
rule  worth  following  everywhere ;  it  gives  definite 
expression  to  a  concrete  moral  standard.  Reading- 
rooms,  libraries,  bowling  alleys,  swimming  pools, 
schools,  halls  for  entertainment,  open-air  amphithe- 
aters for  drama  and  music,  and  properly  equipped 
theater  with  stage  for  winter,  recreation  grounds  for 
^  De  Forest  and  Veiller:    The  Tenement  House  Problem. 

178 


Improving  the  Home  Life 

men,  women  and  children,  are  modern  necessities, 
and  nearness  to  home  adds  to  their  value.  The  rent 
must  be  low  enough  to  attract  working  people  from 
the  insanitary  tenements  of  cities. 

In  these  suburban  quarters,  and  also  in  the  "gar- 
den cities,"  skillful  teachers  of  gardening  make  the 
little  patches  of  soil  far  more  prolific  than  they  would 
be  without  professional  guidance. 

Significant  is  the  garden  in  connection  with  the 
home.  It  is  a  sure  and  important  source  of  income.^ 
The  yield  of  a  small  plot  of  ground,  carefully  culti- 
vated, is  incredible  to  an  ordinary  farmer  accus- 
tomed to  superficial  exploitation  by  extensive  meth- 
ods. With  a  little  care  we  might  learn  from  the 
Chinese  and  Japanese  how  the  waste  and  refuse  of 
the  household  enter  by  the  cycle  of  transformations 
into  materials  for  new  life  and  solve  the  problem 
of  sewage  and  garbage  removal.  The  older  chil- 
dren and  the  wife  can,  without  the  dangers  of  fac- 
tory labor,  add  to  the  material  resources  of  the 
home.  * 

The  garden  becomes  in  hours  of  leisure  and  Sun- 
days a  playground  where  parents  and  children  enjoy 
most  satisfactory  recreation  out  of  a  profitable  en- 
terprise, as  can  be  seen  in  the  open  spaces  near  Leip- 
sic  and  other  German  cities. 

The  fruitful,  responsive  garden  is  a  rival  of  the 

^  Kropotkin  :     The  Conquest  of  Bread. 
F.  H.  King:     Farmers  of  Forty  Centuries. 
Bolton  Hall:     Three  Acres  and  Liberty;  A  Little  Land 
and  a  Living. 

179 


Citizens  in  Industry 


saloon,  and  gives  the  man  a  share  in  the  creation  of 
beautiful  flowers  and  shrubs  which  awaken  his  es- 
thetic nature  and  give  insight  into  biology,  and  an 
interest  in  all  science  which  can  be  stimulated  and 
deepened  by  lectures  and  exhibits. 

The  offer  of  prizes  for  the  best  vegetables,  flow- 
ers and  fruits  furnishes  a  motive  for  beginning,  as 
the  county  fair  has  long  since  made  clear.  It  is  not 
the  pecuniary  value  of  the  premium  alone  which  in- 
spires action,  but  chiefly  the  social  distinction,  which 
is  emphasized  by  publication  of  the  honors  won,  in 
local  newspapers. 

It  is  said  that  many  miners  are  of  a  roving  dispo- 
sition, which  is  in  part  caused  by  irregularity  of  em- 
ployment, with  intervals  of  idleness;  and  that  the 
cultivation  of  a  garden  tends  to  keep  them  at  home, 
and  so  to  favor  steady  habits.  One  does  not  like 
in  midsummer  to  go  off  on  a  spree  and  leave  two 
hundred  dollars'  worth  of  vegetables  to  weeds  and 
thieves. 

Inspection  and  Control  of  Dwellings. — The  Ford 
Company  (automobile  manufacturers)  has  intro- 
duced startling  and  even  spectacular  changes  in  their 
shops,  offering  wages  which  few  competing  firms 
could  offer  without  facing  early  bankruptcy.  It  is 
too  early  to  foresee  the  outcome  in  this  exceptional 
instance,  but  it  is  worth  while  to  point  out  the  fact 
that  this  increase  of  wages  is  accompanied  by  drastic 
and  even  despotic  measures  to  increase  efficiency — 
measures  which  extend  to  inspection  and  control  of 
the  personal  habit's  and  domestic  life  of  the  employ- 

i8o 


Improving  the  Home  Life 

ees.  People  who  are  rather  critical  may  have  con- 
demned Mr.  Ford's  plan  of  dividing  the  profits  of 
his  automobile  business  with  his  men,  providing  a 
$5  minimum  wage  and  thus  bestowing  on  many  what 
must  appear  to  them  to  be  sudden  wealth.  It  seems, 
however,  that  he  had  given  full  thought  to  the  effects 
and  consequences  of  the  step  before  it  was  taken. 
He  hopes  that  the  increased  wages  will  be  well  spent, 
if  a  considerable  amount  of  friendly  espionage — if 
it  may  be  called  so — can  effect  that  result. 

*'The  man  who  finds  himself  blessed  with  an  in- 
come such  as  he  had  never  hoped  to  attain,"  writes 
Len  G.  Shaw  for  the  Detroit  Free  Press,  "is  not  go- 
ing to  be  left  to  work  out  his  own  salvation,  accord- 
ing to  the  light  he  may  possess.  He  must  give  an 
accounting  of  his  stewardship  along  more  rigid  lines 
than  were  ever  before  attempted  in  profit-sharing; 
but  it  is  equally  true  that  as  administrator  of  his  own 
destiny  he  is  to  receive  assistance  such  as  was  never 
before  rendered  by  a  manufacturing  corporation  or 
any  other  agency,  for  that  matter." 

Mr.  Shaw  continues : 

"The  public  had  not  recovered  from  its  surprise 
when  a  staff  of  investigators  started  forth,  charged 
with  most  unusual  duties.  Straight  into  the  homes  of 
employees  these  men  went.  They  set  about  the  task 
as  methodically  as  they  make  automobiles  in  the 
plant  where  this  revolution  had  taken  place. 

"Each  man  carried  with  him  a  list  of  names  of 
employees.  There  Vv'as  the  most  astonishing  impar- 
tiality in  this  respect.     Tony  Catalina,  laborer,  who 

i8l 


Citizens  in  Industry 


at  night  crawled  into  a  dirty  bed  in  a  third-class  lodg- 
ing house,  and  the  foreman  of  a  department  who 
had  been  with  the  company  for  years,  might  appear 
on  one  list.  And  each  would  come  in  for  as  search- 
ing an  investigation  as  the  other.  The  information 
thus  gained  is  going  to  play  an  important  part  in 
the  future  welfare  of  Tony  Catalina  and  the  fore- 
man. Upon  their  worth  as  citizens  and  the  manner 
in  which  they  improve  their  opportunities  will  be  de- 
pendent the  increased  remuneration  they  receive,  for 
it  is  here  as  elsewhere  a  survival  of  the  fittest. 

"It  is  often  the  case  that  a  man  of  extraordinary 
efficiency  in  the  plant  has  no  appreciation  of  his  duty 
to  the  community  at  large,  no  regard  for  home  life. 
His  conduct  outside  working  hours  may  be  such 
that  he  is  a  menace  to  the  morals  of  the  neighbor- 
hood. He  may  live  amid  unspeakable  conditions. 
If  such  a  state  of  affairs  is  unearthed,  the  man  is  in- 
formed that  he  must  turn  over  a  new  leaf — and  keep 
it  turned.  He  must  better  his  own  manner  of  living 
and  that  of  those  dependent  upon  him,  if  such  there 
are,  or  he  cannot  continue  to  share  in  the  benefits  to 
be  distributed.  He  will  be  given  every  encourage- 
ment and  afforded  all  the  assistance  possible  if  he 
evinces  a  willingness  to  make  good.  If  after  a  fair 
trial  no  improvement  is  shown  he  is  down  and  out, 
and  again  it  makes  no  difference  whether  it  is  hum- 
ble Tony  Catalina,  laborer,  or  a  high-salaried  fore- 
man. 

"On  the  other  hand,  it  is  very  often  the  case  that 
a  man  of  mediocre  capabilities  owns  or  is  paying 

182 


Improving  the  Home  Life 

for  his  home  and  is  bringing  his  family  up  in  com- 
parative luxury.  This  will  be  taken  note  of  and 
serve  as  a  credit  in  striking  the  balance  it  is  intended 
to  maintain  for  all  time. 

"It  is  the  determination  of  the  company  that  all 
money  disbursed  in  the  form  of  increased  wages  shall 
be  devoted  to  some  useful  purpose. 

"Where  such  a  course  is  justified,  there  will  be  in- 
sistence upon  housing  conditions  undergoing  a 
change.  This  demand  will  be  made  reasonable  be- 
cause of  the  increased  compensation  a  man  will  re- 
ceive, and  his  ability  to  thus  provide  more  comfort- 
able quarters. 

"Employees  will  be  urged  to  invest  in  land  con- 
tracts, or  start  savings  accounts.  What  is  more,  they 
will  from  time  to  time  be  required  to  render  an  ac- 
counting of  what  has  been  accomplished.  And  the 
more  favorable  the  showing,  all  things  taken  into 
consideration,  the  greater  will  be  the  reward.  Fac- 
tory efficiency  will  be  reckoned  in  this  connection, 
thus  silencing  the  criticism  of  those  who  asserted  that 
a  wholesale  raising  of  wages  tended  to  throttle  am- 
bition and  kill  off  individualism. 

"Every  beneficiary  is  placed  on  his  individual 
honor,  but  a  complete  record  of  his  conduct  will  be 
constantly  available — shop  and  home  progress,  what 
becomes  of  the  money  he  receives — and  woe  betide 
the  one  who  attempts  misrepresentation. 

"This  system  of  registration  is  unique  in  an  un- 
dertaking of  this  nature.  By  reference  to  it  there 
can  be  determined  in  an  instant  the  habits  of  every 

183 


Citizens  in  Industry 


employee,  age,  family  relations,  whether  single  or 
married,  how  many  are  dependent  upon  him,  etc. 
Nothing  is  taken  for  granted.  Armed  with  what  in- 
formation can  be  obtained  from  the  man  himself, 
the  investigator  calls  at  the  home  or  the  boarding 
house  and  ascertains  conditions  there.  The  quest 
for  facts  is  carried  even  further.  The  seeker  after 
light  visits  the  haunts  of  individuals,  becomes  ac- 
quainted with  their  associates,  and  thus  learns  what 
he  wants  to  know  from  presumably  reliable  sources. 
On  these  findings  he  bases  his  report,  and  this  to  a 
large  extent  determines  the  disposition  of  the  case, 
unless  an  appeal  is  taken. 

"It  will  be  ascertained  whether  the  foreign  la- 
borers plan  to  bring  their  families  to  this  country 
in  the  near  future,  or  whether  they  are  saving  up 
so  they  can  go  back  to  their  native  land.  They  will 
be  encouraged  to  bank  their  money,  instead  of  trust- 
ing it  to  the  keeping  of  their  fellow-boarders  or 
hoarding  it  away  in  hiding-places  that  are  not  always 
secret.  The  question  of  better  housing  for  this  class 
must  soon  or  late  come  up  for  solution,  and  it  is 
more  than  likely  that  municipal  cooperation  will  be 
invited  along  this  line." 

Results  are  already  apparent.  Efficiency  In  the 
works  has  Increased.  Mr.  Ford  Is  quoted  by  John 
A.  Fitch  in  The  Survey  as  saying  that  "our  men  are 
doing  as  much  work  now  in  eight  hours  as  they  did 
before  in  nine."  From  the  same  source  it  Is  learned 
that  already  there  has  been  a  remarkable  epidemic 
of  housecleaning. 

184. 


Improving  the  Home  Life 

This  remarkable  experiment  forces  upon  us  tlie 
question  whether  a  method  which  produces  such  ex- 
cellent results  under  private  and  unauthorized  direc- 
tion should  not  be  made  the  duty  of  authorized  pub- 
lic officials;  if  such  surveillance  is  desirable  on  a  small 
scale  and  with  the  corps  of  a  single  firm  why  is  it  not 
desirable  for  all  men,  in  all  industrial  centers? 
Would  it  not  be  well  to  improve  the  quality  and  ex- 
tend the  functions  of  municipal  health  departments, 
and  provide  them  adequate  means  for  enforcing  the 
regulations  demanded  by  modern  hygienic  science? 
It  may  be  well  to  remember  that  the  deliverance  of 
the  Philippines  and  of  the  Panama  Canal  Zone  from 
the  ancient  plagues  of  tropical  regions  was  not  due 
chiefly  to  the  special  knowledge  of  the  surgeons  in 
charge,  but  to  the  fact  that  modern  medical  men  were 
there  for  the  first  time  clothed  with  sufficient  power 
to  drill  and  discipline  negligent  and  uninstructed  lay- 
men until  the  very  sources  of  infection  were  removed. 
This  lesson  of  private  enterprise  and  of  public 
achievement  should  not  be  lost  upon  the  adminis- 
trators of  our  cities.  The  best  service  of  a  vigorous 
and  inventive  manager  is  to  set  the  pace  for  the  gov- 
ernments which  are  the  organs  of  all  the  people. 

Octavia  Hill  Methods. — Not  only  must  dwellings 
be  inspected  to  prevent  filth  and  disease,  but  there 
are  whole  communities  which  require  visitors,  armed 
with  the  rights  and  authority  of  rent  collectors,  to 
make  friends  with  the  occupants  and  use  their  influ- 
ence to  improve  habits  and  character.  This  is  a  les- 
son which  the  famous  and  honored  Octavia  Hill,  as- 

i8s 


Citizens  in  Industry 


sisted  by  John  Ruskin,  has  taught  the  world.  The 
emhient  economist,  Professor  Karl  Buecher,  praised 
her  work  and  declared  that  human  kindness  has  a 
high  pecuniary  value. ^ 

^  For  a  list  of  works  on  housing  and  town  planning,  see 
A  Guide  to  Reading  in  Social  Ethics  and  Allied  Subjects,  by 
teachers  in  Harvard  University,  8l  ff.  The  National 
Housing  Association,  105  East  226.  street,  New  York  City, 
will  furnish  information.  The  Russell  Sage  Foundation, 
New  York  City,  is  making  experiments  with  modest  suburban 
homes  which  deserve  attention.  See  Grosvenor  Atterbury: 
Model  Towns  in  America. 


CHAPTER   V 

NEGLECTED  AND   HOMELESS  YOUTHFUL    EMPLOYEES 

Responsibility. — The  great  industries  are  magnets 
which  annually  attract  a  vast  number  of  girls  and 
boys  to  the  towns  and  cities  from  the  farms  where 
there  is  not  enough  employment  for  all.  It  Is  true 
that  many  of  these  minors  live  at  home  with  their 
parents  and  are  under  their  care;  but  multitudes  are 
exposed  to  all  the  vicissitudes  and  temptations  of  city 
life,  without  mentors,  and  with  their  earnings  free 
from  control.  The  problem  of  securing  a  decent 
boarding  place  is  difficult,  and  a  mistake  may  mean 
moral  perdition.  Employers  of  such  minors  must 
recognize  that  they  have  here  a  duty  to  perform, 
even  if  they  refuse  to  admit  such  obligation  in  re- 
gard to  adults. 

The  capitalist  managers  as  a  class  have  a  pecu- 
niary interest  In  all  the  groups  of  the  population 
which  furnish  the  supply  of  labor;  but  this  Is  only 
one  consideration.  The  capitalist  managers  control 
not  only  wealth  but  men,  and  they  have  Influence 
with  officials  and  legislators.  Through  their  clubs 
and  associations  they  can  wield  a  mighty  force  in 
directing  law-makers  and  executive  actions.  The 
managers  of  business   enterprise   are   also   citizens, 

187 


Citizens  in  Industry 


and  a  growing  number  of  them  have  the  worthy 
ambition  to  make  themselves  felt  for  good  In  the 
government  of  cities,  states  and  nation.  It  Is  to 
such  motives  appeal  is  made  here  on  behalf  of  neg- 
lected and  exploited  children  and  youth  in  our  indus- 
trial and  commercial  centers  who,  If  they  survive  the 
diseases  of  early  life,  enter  the  productive  processes 
crippled,  mutilated,  diseased,  demoralized.  The 
theme  is  too  large  for  a  chapter,  yet  too  Important 
to  pass  over  in  a  discussion  designed  to  Indicate  some 
of  the  responsibilities  and  opportunities  of  em- 
ployers. 

First  of  all.  In  spite  of  many  improvements  and 
reforms,  we  permit  children  to  work  at  street  trades, 
and  it  has  been  difficult  or  Impossible  to  secure  the 
cooperation  of  many  of  the  great  newspapers  in  at- 
tracting public  attention  to  this  evil.  It  is  pitiful  how 
a  mistaken  notion  of  financial  interest  will  blind  the 
eyes  of  keen  and  Intelligent  men  to  the  physical  and 
moral  perils  of  children  engaged  In  selling  papers  on 
the  streets,  especially  young  girls.  The  evils  are  so 
little  understood  by  the  general  public  that  generous 
persons  make  a  virtue  of  buying  papers  of  the  mis- 
erable and  ragged  creature  who  shivers  and  sobs  on 
the  street  of  a  w^intry  night  and  begs  the  men  to  buy. 
There  have  been  those  who  through  sheer  ignorance 
of  the  consequences  of  street  trades  actually  defend 
them  on  the  ground  that  these  "little  merchants"  are 
acquiring  experience  In  "business";  and  thus  pubHc 
opinion  not  only  tolerates  but  fosters  these  "blind 
alley"  occupations  out  of  which  the  youth  emerges 

l88 


Neglected  Youthful  Employees 

with  the  loss  of  the  best  years  of  his  life  for  train- 
ing in  a  really  useful  trade.  The  waste  of  hu- 
manity in  these  street  trades  without  a  future  is 
something  tragic.  Among  the  worst  offenders  have 
been  the  telegraph  and  express  companies,  who, 
when  permitted  by  pubHc  apathy,  blindness  and 
defective  law,  have  sent  lads  at  night  into  saloons 
and  houses  of  ill  fame.  What  kind  of  citizens 
can  come  out  of  such  unclean  experiences?  There 
are  enough  crippled  men  and  aged  persons  to  do 
all  such  errands  without  spoiling  life  in  the 
bud. 

In  a  single  chapter  Mrs.  Bowen,^  who  has  directed 
wealth,  work,  and  talent  to  the  protection  of  children 
and  youth,  recites  some  of  the  further  measures  of 
protection  which  ought  to  be  adopted.  She  com- 
plains, and  justly,  that  when  women's  clubs  had  at 
their  own  cost  and  by  their  own  patient  labor  and 
sacrifice  established  nurses  in  the  public  schools,  and 
probation  officers  in  the  juvenile  courts,  and  gathered 
facts  about  the  exploitation  of  children  and  women  in 
factories,  they  were  excluded  from  all  control  of 
the  institutions  thus  created  and  men  v/ith  a  "pull" 
reigned  supreme !  For  many  years  women  have 
pleaded  for  a  birth  registration  law;  for  an  act 
raising  the  "age  of  consent,"  for  municipal  control 
of  the  milk  supply,  for  social  service  In  public  out- 
door relief,  for  an  efficient  child  labor  law,  for  an 
effective  method  of  protecting  unmarried  mothers 
and  their  babes,   for  a  more  sane  marriage  license 

^  "Safeguards  for  City  Youth  at  Work  and  Play." 
189 


Citizens  in  Industry 


system,  for  obligatory  asylum  treatment  of  irrespon- 
sible girls.  In  a  great  measure  their  wise,  sane,  per- 
sistent, and  patriotic  efforts  have  resulted  in  securing 
the  enactment  of  laws  by  legislatures  which  resisted 
to  the  last  hour — and  then?  The  politicians  gave  the 
ojffices  to  other  politicians  of  a  lower  class  and  the 
women  were  compelled  to  toil  on  to  make  the  law 
accomplish  something  in  spite  of  the  "Machine." 
If  the  busy  men  of  this  country  really  wish  to  improve 
the  condition  of  life  for  children  they  must  give  a 
larger  legal  and  political  power  to  those  who  have 
leisure  to  inquire  and  the  maternal  instincts  and  ex- 
perience, that  is  to  women.  He  who  really  and  sin- 
cerely wills  an  end  must  also  will  the  necessary  means 
for  accomplishing  the  end. 

Typical  homes  for  working  boys  are  found  in 
various  German  industrial  centers.  One  is  described 
as  a  stately  house  built  on  a  sunny  slope.  The 
ground  floor  contains  a  large  dining-room  and  two 
living-rooms  provided  with  newspapers  and  games. 
The  dwelling  of  the  manager  of  the  house,  with  Its 
servants'  rooms  and  housekeeping  rooms,  is  separate 
and  has  a  separate  entrance.  The  first  and  second 
stories  contain  1 1  rooms  with  a  total  of  30  beds,  a 
washroom  and  toilet.  Each  boy  has  a  bed,  a  table, 
a  mirror,  and  a  clothespress  containing  several 
drawers  fitted  with  locks.  The  bedrooms  are  used 
only  for  sleeping  and  are  not  heated.  All  other 
rooms.  Including  the  hall,  are  heated  by  a  central 
heating  system.  Hot  and  cold  water  is  furnished  in 
the  washroom,  and  a  cupboard  Is  set  apart  for  every 

190 


Neglected  Youthful  Employees 

lad  in  which  he  can  keep  a  towel  and  necessary  uten- 
sils. The  house  furnishes  bed  linen,  night-shirt  and 
towels.^  The  basement  contains  the  heating  plant, 
housekeeping  rooms,  store-room  and  lockers.  For 
board  and  lodging  each  boy  pays  96  cents  a  week, 
which  barely  covers  cost.  The  firm  offers  the  house 
free  and  pays  for  management.  A  cultured  woman 
manages  the  house  and  cares  for  the  boys  like  a 
mother.  The  establishment  is  not  only  a  boarding 
house  but  the  nearest  possible  substitute  for  a  home 
and  school. 

"It  has  been  estimated  that  if  a  girl  does  not  live 
at  home  she  cannot  live  on  less  than  $8.00  per  week, 
for  she  must  pay  $1.50  to  $2.00  a  week  for  her 
room,  $3.00  for  her  board,  60  cents  for  her  carfare 
and  90  cents  for  luncheons;  this  leaves  her  only 
$1.50  or  $2.00  for  clothes,  doctors,  dentists,  litera- 
ture and  recreation."  A  study  of  200  girls  in  de- 
partment stores  in  Chicago  showed  that  the  wages 
ran  from  $2.50  to  $1  i.oo  a  week,  the  majority  under 
$8.00.  The  report  of  the  Commissioner  of  Labor 
on  "Conditions  of  Women  and  Child  Wage  Earners 
In  the  United  States"  shows  that  in  8  of  the  leading 
department  stores  of  Chicago,  out  of  13,160  women 
and  girls,  over  one-half,  or  7,033,  earned  less  than 
$8.00  a  week;  many  less  than  $5.00  a  week;  13  per 
cent.  In  retail  stores,  29  per  cent.  In  clothing  trades, 
27  per  cent,  in  candy  trades,  17  per  cent.  In  box  fac- 
tories, 5  per  cent,  in  corset  factories,  29  per  cent,  in 

^  Kubler  und  Niethammer:  in  Albrecht;  Handb.  der  Soz. 
Wohlf.,  i,  134  ff. 

191 


Citizens  in  Industry 


stockyards  less  than  $5.00  per  week.  Even  if 
the  girls  live  at  home  8  i  per  cent,  of  factory  women 
in  Chicago  and  78  per  cent,  of  those  working  in  de- 
partment stores  contribute  of  their  earnings  to  the 
family  exchequer. 

There  are  5,000,000  working  women  in  the 
United  States,  one-half  of  them  under  24  years  of 
age;  one-fifth  of  them  earn  less  than  $200  a  year 
or  $4  a  week;  3.5  per  cent,  earn  less  than  $325  a 
year  or  about  $6  a  week. 

"The  girl  who  lives  at  home  and  who  gives  her 
wages  to  her  mother,  is  of  course  protected  in  that 
she  is  sheltered  and  fed,  but  the  girl  who  is  not  living 
at  home  is  obliged  to  rent  the  cheapest  room  she  can 
find  from  a  landlady  who  is  utilizing  every  possible 
inch  of  space  for  lodgers;  the  girl  is  able  to  rent 
only  a  small  hall  bedroom,  badly  lighted,  inade- 
quately ventilated  and  poorly  furnished,  and  it  is 
only  a  short  time  before  impure  air  and  improperly 
cooked  food  produce  an  anemic  condition  which 
offers  a  fertile  field  for  disease."  ^ 

The  facts  made  known  by  such  Investigations  re- 
veal gross  neglect  and  serious  responsibility  of  man- 
agers of  hotels,  restaurants,  department  stores  and 
factories.  Under  such  conditions  health  is  broken 
down,  women  are  rendered  unfit  for  maternal  func- 

^  Mrs.  Louise  de  Koven  Bowen:  Safeguards  for  City 
Youth,  pp.  55-56 — a  book  full  of  information  on  the  condi- 
tions surrounding  young  people  in  cities. 

Cf.  Jane  Addams:  The  Spirit  of  Youth  and  the  City 
Streets. 

192 


Neglected  Youthful  Employees 

tions,  life  Is  joyless,  monotonous,  and  the  path  beset 
by  temptations.  The  only  wonder  is  that  more 
girls  are  not  driven  into  the  ways  of  the  prostitute. 
Mrs.  Bowen,  while  insisting  upon  these  dangers  to 
character,  urges  that  we  should  not  suspect  the  hon- 
esty of  the  majority  of  these  working  girls  and 
women.  "I  cannot  but  deplore  the  general  inference 
that  is  being  made  at  the  present  time  that  large  num- 
bers of  girls  are  being  driven  into  a  disreputable  life 
because  they  receive  an  insufficient  wage.  While  it 
is  true  that  girls  who  are  inadequately  fed,  badly 
housed  and  poorly  clothed  sometimes  do  yield  to 
temptation  in  order  that  they  may  live  more  comfort- 
ably, yet  on  the  other  hand,  there  is  an  enormous 
number  and  of  course  by  far  the  larger  part  of  them 
who  not  only  resist  temptation,  but,  true  to  their 
traditions  and  innate  convictions,  turn  indignantly 
from  it."  1 

The  excuse  offered  by  many  employers  is  that  they 
cannot  afford  to  provide  better  quarters  and  pay 
higher  wages  because  competition  fixes  these  condi- 
tions of  the  labor  market,  and  that  any  attempt  to 
provide  decent  income  and  accommodations  would 
mean  bankruptcy.  There  is  a  grain  of  truth  in  this 
explanation  and  apology,  but  there  is  a  way  out,  if 
the  managers  are  in  earnest;  they  can  encourage  col- 
lective bargaining  and  minimum-wage  laws,  the  only 
means  ever  yet  found  effective  for  raising  the  level 
of  competition  to  a  plane  where  the  intelligent  con- 
sumer can  enjoy  commodities  and  services  without 

1  Op.  cit. 


Citizens  in  Industry 


the  pangs  of  remorse.  Only  too  often  the  employ- 
ers have  combined  to  resist  these  efforts,  and  in  that 
case  they  must  bear  as  a  class  the  full  responsibility 
for  the  continuance  of  abuses  which  ought  to  shock 
the  moral  nature  of  every  citizen. 

Even  short  of  these  general  measures  it  is  possible 
to  provide  social  secretaries  in  hotels,  restaurants, 
factories  and  mercantile  establishments  who  can  hear 
complaints,  give  wise  counsel  to  ignorant  young  girls, 
and  bring  immoral  brutes  of  foremen,  guests  or  cus- 
tomers to  punishment  for  luring  their  inexperienced 
victims  Into  places  of  evil  repute. 

JVo7-king  Girls'  Homes. — These  are  in  all  essen- 
tial particulars  similar  to  those  for  boys;  only  that 
girls  can  do  more  in  the  way  of  caring  for  their  own 
rooms,  washing  and  even  cooking  for  themselves. 
Instruction  in  household  arts  is  for  its  own  sake  very 
desirable. 

In  Germany  the  managers  sometimes  Invite  the 
cooperation  of  orders  of  Catholic  or  Protestant  re- 
ligious sisters  or  brothers  to  have  the  care  of  the 
young  people;  this  reduces  the  cost  and  Improves 
the  qualit}'  of  the  service. 

In  Osaka,  Japan,  some  of  the  boarding  establish- 
ments for  girls  observed  by  the  writer  are  very  elab- 
orate, and  beautiful  though  simple.  The  customs 
and  climate  permit  the  use  of  dormitories  almost 
without  furniture,  but  clean,  tidy  and  comfortable. 
The  employees  of  the  vast  textile  mills  are  not 
obliged  to  leave  the  grounds  for  their  entertainment, 
and  any  excursions  about  the  cit}^  would  be  ruin  to 

194 


Neglected  Youthful  Employees 

their  character  and  reputation.  Within  the  ample 
grounds  are  cooperative  bazaars  where  purchases  can 
be  made  at  cost.  A  theater  furnishes  amusement 
and  recreation.  The  ceremonial  feminine  etiquette 
of  the  nation  is  taught  by  competent  instructors. 
Medical  advice  and  hospital  care  are  ever  ready  at 
hand. 

At  Madras,  India,  a  British  company  employing 
young  women  from  the  rural  regions,  has  established 
a  considerable  village  of  different  buildings  for  dor- 
mitories, recreation,  schools,  hospital  and  all  the  es- 
sentials of  complete  living.  The  temporary  transfer 
from  clay  floors  of  mud  huts,  with  their  insanitary 
and  ugly  surroundings,  to  these  superior  dwellings, 
must  breed  a  discontent  with  the  customary  condi- 
tions which  will  bring  pain,  but  also,  we  may  hope, 
improvement  at  last  in  the  native  homes.  This  has 
certainly  been  the  influence  of  similar  experience  at 
Hampton,  Virginia,  and  Tuskegee,  Alabama,  in  the 
case  of  the  negro  girls.  If  satisfied  happiness  with 
filth  is  better  than  the  misery  which  accompanies 
struggle  for  a  higher  level,  of  course  this  experiment 
is  open  to  severe  criticism. 

In  a  laudable  desire  to  protect  young  women  from 
temptation  it  is  easy  to  adopt  regulations  totally  for- 
eign to  the  spirit  of  the  best  American  life.  Lib- 
erty and  self-direction  have  their  perils,  and  occa- 
sionally lapses  from  virtue  will  make  even  adven- 
turous spirits  almost  skeptical  of  freedom.  Yet 
there  is  no  permanent  security  for  character  except 
in  self-control.     Walls  and  bars  will  never  trans- 

1951 


Citizens  in  Industry 


form  a  feeble-minded  person  into  a  strong  woman 
who  not  only  protects  herself  from  insult  by  her  mod- 
esty and  dignity,  but  even  arouses  In  men  a  respect 
for  womankind  which  makes  boys  and  men  purer 
and  stronger.  When  the  manager  has  used  all  rea- 
sonable measures  for  warding  off  temptation  and 
providing  means  for  rational  living  he  must  trust 
the  forces  of  social  Idealism  for  the  rest.  Those 
who  fail  should  be  sent  to  a  celibate  colony  of  the 
feeble-minded  for  custodial  treatment;  they  will  be 
comparatively  few,  if  educational  and  religious  in- 
fluences of  the  right  quality  are  offered. 

Homes  for  working  girls  must  be  free  from  pat- 
ronage, petty  espionage  and  harsh  rules.  "To  a 
self-respecting  young  woman  who  Is  working  hard 
to  earn  her  own  way  in  the  world,  the  attitude  of 
patronage  and  the  feeling  that  she  Is  being  partially 
supported  by  charity  are  Intolerable.  The  endless 
rules  and  regulations,  the  apparent  assumption  that 
she  is  by  nature  immoral  and  can  be  prevented  from 
going  straight  to  ruin  only  by  being  hedged  about  by 
all  sorts  of  Ironclad  restrictions,  are  insulting  and 
humiliating  to  her,  and  make  the  inmates  of  the 
'home'  (God  save  the  mark  I)  both  rebellious  and 
unhappy."  ^ 

Closely  related  to  these  boarding  homes  for 
minors  and  other  unmarried  persons  away  from 
home  are  the  self-supporting  clubs  which  provide 
similar  wholesome  surroundings  for  employees  in  cit- 
ies, without  direct  connection  with  particular  estab- 

1  Mary  K.  Maule. 

196 


Neglected  Youthful  Employees 

lishments.  Experiments  have  shown  that  an  associa- 
tion of  wise  and  capable  philanthropists  can  organ- 
ize such  clubs  in  a  way  to  maintain  self-respect;  the 
founders  securing  the  capital  and  credit  necessary 
for  renting  the  buildings  and  furnishing  equipment, 
and  assuring  an  economic  management,  while  the 
weekly  payments  cover  all  expenses  and  reimburse 
the  founders  for  the  original  outlay. 

"A  model  dwelling  for  girls  employed  in  the  gov- 
ernment post-office  and  telegraph  and  telephone  of- 
fices has  been  established  in  Paris.  As  in  other  cit- 
ies many  of  these  young  women  live  in  the  poorer 
quarters  of  the  city,  are  improperly  cared  for  and 
are  exposed  to  many  privations  and  temptations; 
many  are  homeless  or  far  from  parental  influences. 
A  company  was  formed  with  a  capital  of  $80,000. 
A  house  was  built,  seven  stories  in  height.  In  the 
basement  is  the  kitchen;  on  the  ground  floor  the  hall, 
drawing-room,  dining-room,  and  parlor.  The  walls 
are  largely  of  glass  for  'of  all  flowers,  the  human 
requires  the  most  sun.'  The  floors  are  of  marble. 
On  the  ground  floor  Is  a  beautiful  'Jardin  Fran- 
^ais'  decorated  with  flowers  and  shrubs.  On  each 
floor  are  eighteen  separate  rooms,  including  sleep- 
ing-rooms, pantries,  bathrooms,  telephone  booths. 
The  rooms  are  attractively  decorated,  and  everything 
is  washable,  even  to  curtains  and  walls.  The  rooms 
are  lighted  by  electricity  and  heated  by  steam,  and 
each  one  opens  upon  a  balcony.  During  the  summer 
months  the  girls  are  expected  to  cultivate  balcony 
gardens.    The  largest  room  rents  for  $7  per  month 

197 


Citizens  in  Industry 


and  a  dinner  of  four  courses  costs  i6  cents.  The 
building  has  become  a  civic  center  for  working  girls 
of  Paris.  Women's  clubs  are  formed  for  discus- 
sions, and  there  are  classes  in  dressmaking  and  lan- 
guage study."  ^ 

The  Young  Men's  Christian  Association  and  the 
Young  Women's  Christian  Association,  and  similar 
organizations  of  Catholics,  Jews  and  others,  have  un- 
dertaken to  provide  a  certain  number  of  good  board- 
ing places  accessible  to  factories  and  mercantile  es- 
tablishments where  large  numbers  of  homeless  young 
people  are  employed.  They  are  frequently  encour- 
aged and  subsidized  by  managers  of  firms  because  of 
their  excellent  influence.  The  rent  received  for  the 
rooms  and  privileges  of  the  house  not  only  pays  ex- 
penses but  supplies  a  revenue  to  the  associations. 

The  "Eleanor  clubs"  of  Chicago,  established  by 
the  capital  and  enterprise  of  a  thoughtful  and  gen- 
erous woman,  are  self-supporting  homes  so  economi- 
cally managed  as  to  afford  board  and  rooms  at  a  cost 
within  the  means  of  girls  of  meager  income,  close  to 
the  minimum.  A  clubroom  downtown,  with  rest- 
rooms  and  restaurant,  enables  the  girls  to  have  a 
comfortable  hour  at  noon  without  paying  carfare. 
The  genial  life  of  these  clubs  makes  them  very  at- 
tractive, and  the  fact  that  they  are  not  dependent  on 
outside  subsidies  recommends  them  to  brave  and 
honest  young  women  who  are  fighting  their  own 
battle  in  a  city  far  from  their  own  homes.  They 
do  not  ask  nor  would  they  receive  help  from  their 

^  American  Rezneiv  of  Reviews,  xxxv,  579-580. 

198 


Neglected  Youthful  Employees 

employers;  but  business  men  could  well  afford  to 
promote  such  efforts  by  lending  the  initial  capital 
and  by  selecting  skillful  managers.  After  that,  in- 
terference would  ruin  the  whole  movement. 

The  cityward  drift  of  youth  from  the  country  is 
very  strong  and  it  bears  on  its  current  many  an  in- 
dependent lad  and  girl,  who,  in  the  whirl  of  new 
and  dazzling  surroundings,  away  from  the  customary 
inhibitions  of  their  former  domestic  life,  may  lose 
their  footing.  Their  boarding  and  rooming  houses 
are  not  always  suitable  places  for  the  formation  of 
character;  although  it  is  amazing  how  few  relatively 
make  shipwreck  and  how  many  hew  their  way 
through  the  rocky  obstacles  to  success.  Men  who 
control  property  and  require  the  services  of  an  army 
of  clerks  and  manual  workers  might  well  combine 
to  supply  wholesome  dwellings  for  these  young 
people,  without  those  petty  annoyances  and  humil- 
iating conditions  which  exasperate  generous  and 
high-spirited  young  people  who  are  trying  to  make 
their  own  way  and  measure  their  strength  against 
wind  and  wave.  The  Eleanor  clubs  show  how  this 
can  be  done. 


CHAPTER    VI 

EDUCATION  AND  CULTURE 

The  human  needs  are  not  completely  met  by 
improvement  of  income,  food  and  physical  com- 
fort. The  working  people  have  a  right  to  all 
the  heritage  of  our  common  civilization  as  far 
as  each  person  is  capable  of  assimilating  its  quali- 
ties. The  richest  man  is  the  greatest  debtor  to  past 
generations  and  most  dependent  on  the  toilers  of  the 
present  for  his  food  and  raiment.  All  men  have 
the  same  essential  faculties,  although  in  ability  and 
advantages  they  are  of  all  degrees  of  inequality. 
The  Declaration  of  Independence  says  that  all  men 
are  created  free  and  equal,  though  the  assertion  has 
been  ridiculed  on  the  ground  that  men  are  not  alike 
in  strength  and  capacity.  Probably  the  signers  of 
the  Declaration  were  quite  as  well  aware  of  the  pe- 
culiar differences  in  men,  as  their  recent  critics;  but 
they  were  looking  deeper  than  the  aristocrats  and 
worshipers  of  the  Superman;  they  saw  that  all  men 
arc  of  one  essence,  of  one  blood,  and  need  the  same 
spiritual  food.  The  progress  of  the  people  since 
they  wrote  this  classic  of  democracy  vindicates  their 
prophecy.  There  is  not  a  single  form  of  higher 
values  for  which  there  is  not  heart-hunger  in  the 

200 


Education  and  Culture 


homes  of  the  wage-earners;  and  from  cottages 
emerge  scholars,  inventors,  artists,  orators,  rulers; 
and  this  source  of  talent  and  genius  still  awaits  full 
exploitation  by  universal  education  and  partial  re- 
lease from  exhausting  toil.^  Welfare  work  must 
count  with  these  higher  aspirations  of  the  rising 
democracy.  The  men  who  perform  the  most  dis- 
agreeable, monotonous,  depressing  labor  for  society 
have  the  first  claim  on  beauty,  truth  and  liberty. 
Americans  are  said  by  foreign  cities  to  be  worshipers 
of  the  almighty  dollar;  but  it  was  an  American,  the 
poet  Lanier,  who  sang  of  the  rights  of  toilers  to 
music  and  joy  in  "The  Symphony."  No  philosophers 
ever  saw  more  clearly  than  our  Emerson,  Channing 
and  Lincoln  the  divine  possibilities  of  our  common 
human  nature  and  of  daily  toil.  We  must  confess 
that  we  have  many  Philistines  who  care  little  for 
Matthew  Arnold's  "sweetness  and  light"  for  all,  and 
who  cynically  mock  at  the  Declaration  of  Independ- 
ence, the  Beatitudes  of  Jesus,  and  who  never  read 
Emerson's  essay  on  "Compensation."  If  they  read 
Lincoln's  speeches  it  is  to  yawn  or  sneer.  But  their 
insolence  is  not  American;  it  is  atavistic  snobbery  or 
childish  imitation  of  inferior  foreign  examples,  and 
will  grow  ashamed  of  itself  in  time  when  it  is  dis- 
covered how  little  money  can  buy,  how  much  frater- 
nal cooperation  can  produce. 

The  facts  recited  in  this  chapter  indicate  the  move- 
ment among  the  better  class  of  capitalist  managers 

^  See  for  expansion  of  this  statement,  L.  F.  Ward:    Ap- 
plied Sociology. 

201 


Citizens  In  Industry 


toward  sincere  respect  for  the  best  elements  in  human 
life,  while  they  also  painfully  show  how  tardy,  slow 
and  uncertain  this  movement  is;  the  story  awakens 
hope  but  calls  for  deeper  insight,  greater  vigor,  and 
more  directed  service. 

Mr.  Arthur  Williams  has  recognized  the  claim  of 
the  toiler  in  saying  that  education  "gives  a  man  a 
chance  with  his  fellow  who  has  had  the  opportunity 
of  spending  more  years  out  of  industry  and  in  an  edu- 
cational institution,  the  man  who  had  a  university 
education.  His  chances  for  becoming  economically 
independent  in  life  are  four  to  one  against  the  other 
man."  The  removal  of  obstacles  to  self-realization 
is  an  act  of  justice  and  a  duty  of  patriotism. 

VOCATIONAL    EDUCATION 

Many  managers  of  industry  and  commerce  find 
fault  with  the  public  schools  for  their  failure  to  teach 
and  train  competent  workmen  in  shops  and  clerical 
employees  in  offices.  Defects  in  spelling,  in  draw- 
ing, in  general  intelligence  and  alertness  are  charged 
against  the  schools.  On  the  basis  of  this  discontent 
with  the  ordinary  institutions  of  education,  200  cor- 
porations, employing  over  500,000  persons  and  rep- 
resenting $2,500,000,000  capital,^  and  many  employ- 
ers of  less  note,  have  themselves  entered  the  field 
of  education.  No  doubt  the  experiment  will  ulti- 
mately show  how  to  improve  the  curriculum  and 
methods  of  the  public  schools,  and  a  way  of  coop- 
^  F.  C.  Henderschott  in  New  York  Press,  Feb.  15,  1914. 
202 


Education  and  Culture 


eration  seems  already  to  have  been  discovered  In 
many  places.  All  life  activities  may  be  given  an  edu- 
cational value. 

In  the  campaign  for  the  Introduction  of  indus- 
trial and  commercial  training  the  amazing  success 
of  Germany  is  frequently  cited:  its  continuation,  vo- 
cational and  commercial  schools  are  praised,  stud- 
ied and  copied.  But  there  is  danger  of  our  imitating 
a  part  of  the  German  program  while  overlooking 
some  of  Its  higher  elements,  and  of  copying  features 
not  adapted  to  American  conditions.  The  wonder- 
ful progress  of  Germany  in  Industry  and  trade  is 
not  due  primarily  or  chiefly  to  technical  and  profes- 
sional training,  but  to  fundamental  scientific  disci- 
pline in  universities,  to  the  general  intelligence  of  the 
people,  to  the  national  campaign  for  physical  cul- 
ture continued  through  more  than  a  century,  to  the 
application  of  artistic  form  In  life  and  In  Industry, 
and  to  the  effects  of  compulsory  education  on  the 
population.  The  German  people  have  not  only 
many  clerks  and  salesmen  who  are  cunning  with  the 
tricks  of  the  counting-room,  but  also  men  In  large 
numbers  who  are  In  all  fields  specialists  and  masters 
of  all  that  the  world  has  learned  in  their  particular 
lines. 

So  long  as  the  majority  of  our  American  working 
people  are  restricted  to  the  monotonous,  narrow,  and 
coarse  processes  of  manufacture  of  crude  products 
we  shall  be  servile  dependents  on  the  nations  like 
France  and  Italy  who  breed  and  develop  artists  and 
artisans  everywhere.    So  long  as  our  highest  achieve- 

203 


Citizens  in  Industry 


ments  are  in  the  production  and  export  of  grain,  coal, 
ore,  wool,  cotton,  rails  and  even  locomotiv-es,  we 
must  rank  third  or  fourth  among  the  progressive  na- 
tions. A  Philistine  ideal  of  vocational  education 
must  in  the  end  defeat  itself.  The  specialist  may  be 
so  trained  as  to  be  deformed. 

The  writer  has  inspected  reform  schools  In  Italy 
where  the  teachers  were  following  American  meth- 
ods In  manual  training,  but  adding  a  fine  and  gracious 
finish  to  the  articles  made  by  the  boys  which  made 
them  genuinely  artistic  beyond  what  can  be  seen  in 
similar  schools  In  the  United  States. 

"There  are  a  thousand  instances  in  which  parents 
are  at  their  wits'  ends  what  to  do  with  their  boys 
when  the  school  days  end,  and  lads  drift  Into  blind- 
alley  situations  that  give  no  scope  for  their  bent  or 
talent.  The  fate  of  others  Is  even  more  deplorable, 
for  they  may  shuffle  through  half  a  dozen  different 
jobs  as  small  wage-earners,  and  be  discharged  with 
no  career  at  all.  Some  of  our  greatest  industrial  un- 
dertakings have  been  built  up  by  the  humblest,  and 
with  establishment  of  a  system  of  choice  of  employ- 
ment, and  employers  on  the  lookout  for  the  most 
likely  youths  for  Introduction  to  their  workshops 
and  drawing  offices,  an  Increase  of  originality  may 
be  expected  in  production." 

We  Americans  are  just  beginning  to  realize  that 
beauty  has  a  rapidly  growing  commercial  value.  We 
may  export  raw  cotton,  materials  for  paints  and  oil, 
and  then  Import  the  same  materials  which  gave  us 
only  a  few  cents,  as  a  painting  worth  hundreds  or 

204 


Education  and  Culture 


thousands  of  dollars.  The  Japanese  pottery  manu- 
facturers take  a  worthless  lump  of  clay  and  so  manip- 
ulate it  that  they  can  sell  to  us  a  beautiful  dish  or 
vase.  It  is  art's  magical  touch  which  makes  all  the 
difference.  It  makes  one  ashamed  to  suggest  this 
argument  from  the  pecuniary  selling  price  of  good 
taste,  but  it  is  the  only  one  the  "practical"  Philistine 
can  understand,  and  we  need  his  money  for  art 
classes;  perhaps  his  children  will  discern  that  beauti- 
ful objects  have  a  value  quite  independent  of  the 
price  they  bring  in  the  market.  By  whatever  route 
we  travel  we  must  soon  come  to  admit  that  artistic 
education  is  an  economic  necessity;  that  in  a  progres- 
sive world  crude  products  of  coarse  labor  must  wait 
outside  for  lucrative  custom. 

It  was  natural  that  employers  of  labor  should  be- 
gin with  what  they  call  "practical  education,"  or 
training  for  trade  skill.  While  the  old  apprentice- 
ship system  has  become  obsolete  and  has  been  aban- 
doned, the  world  of  the  trades  is  looking  for  a  sub- 
stitute and  making  numerous  experiments.  Here 
again  the  patriarchal  system  is  not  altogether  anti- 
quated, though  it  must  assume  new  forms.  Educa- 
tion cannot  be  divorced  from  actual  practice.  The 
manual  training  school,  independent  of  all  shops, 
rendered  a  great  service  to  general  culture  and 
gave  a  preliminary  discipline  In  the  use  of  tools  and 
materials;  but  experience  revealed  a  wide  chasm  be- 
tween even  the  manual  training  school  and  the  actual 
shop.  Managers  and  teachers  are  now  building  a 
bridge  over  this  chasm.     There  are  four  parties  di- 

205 


Citizens  in  Industry 


rectly  interested:  the  family  of  the  boy  and  girl,  the 
employer,  the  trade  union,  and  the  public;  in  the 
best  system  all  four  unite  in  counsel  and  plan,  and 
a  reasonable  compromise  is  reached  by  negotiation. 
This  assumes  that  the  right  to  collective  bargaining 
exists,  and  that  it  should  be  guarded  against  indirect 
attacks  from  some  other  and  conflicting  interests. 

If  trades  could  be  fully  taught  in  schools  no  such 
combination  of  forces  would  be  necessary;  but  the 
final  touch  of  practice  must  be  given  in  the  place 
where  the  process  is  carried  on  regularly  and  for 
pi ofit.  Only  In  this  relation  is  the  lad's  work  tested 
as  it  must  be  when  he  is  an  independent  workman 
and  must  stand  or  fall  as  he  meets  the  requirements 
fixed  by  a  competitive  world.  Another  fact  Is  that 
many  boys  cannot  continue  their  education  long 
enough  to  become  proficient  unless  they  receive  at 
least  some  pay.  The  solution  of  the  problem  of 
technical  education  is  approached  from  various  di- 
rections. 

The  "continuation  school"  has  been  adapted  to 
German  Industrial  conditions  for  many  years  with 
highly  satisfactory  results.  In  this  system  a  part  of 
the  day  Is  devoted  by  the  apprentice  to  the  service  of 
his  employer;  the  other  part  Is  given  to  the  public 
school  where  Instruction  is  directed  to  Improve  work- 
manship. Thus  the  boy  is  kept  longer  under  cultural 
influence,  his  earning  power  for  life  Is  enhanced,  and 
he  has  less  Idle  time  for  the  formation  of  Immoral 
habits.  If  provision  is  made  for  recreation  and  so- 
ciability this  is  a  desirable  discipline.     The  period 

206 


Education  and  Culture 


for  the  "continuation  school"  Is  from  the  fourteenth 
to  the  eighteenth  year,  a  time  least  valuable  for 
earning  income  but  most  valuable  for  forming  good 
habits  and  adding  to  knowledge. 

In  the  best  system  attendance  Is  obligatory  dur- 
ing this  whole  period.  Instruction  Is  given  in  the 
evening  or  at  certain  hours  of  the  day.  If  Instruc- 
tion is  given  in  the  evening  care  must  be  taken  that 
the  pupil  is  not  too  fatigued  to  profit  by  his  Instruc- 
tion. The  purpose  of  the  school  Is  in  part  to  review 
what  has  been  learned  in  the  elementary  school;  be- 
cause youth  often  forgets  what  childhood  has  been 
taught,  unless  the  knowledge  is  kept  alive  by  use. 
Talents  are  discovered.  An  artist  may  be  developed 
by  the  teacher  of  drawing  and  decoration;  and  a  way 
may  be  opened  by  a  scholarship  to  attend  classes  in 
a  school  of  painting  or  sculpture.  Among  the  cul- 
ture studies  pursued  are:  the  language  of  the  coun- 
try, with  practice  in  talking,  reading  and  writing; 
mathematics,  according  to  the  needs  of  the  calling 
and  the  capacity  of  the  apprentice;  singing,  and  play- 
ing on  some  musical  Instrument,  if  there  Is  talent; 
elementary  political  economy,  civics,  morals  and 
manners,  and  law.  The  progress  of  the  pupils  Is 
tested  by  examinations  and  inspection  of  the  quality 
of  work  done,  and  Is  sometimes  stimulated  artifi- 
cially by  prizes  and  distinctions.  A  gift  of  a  set  of 
tools  at  the  end  of  the  first  year  to  a  proficient  youth 
is  a  distinct  encouragement  and  substantial  help. 

The  thrift  habit  Is  cultivated  by  the  present  of  a 
savings  bank  book,  with  a  "nest  egg"  credited,  and 

207 


Citizens  in  Industry 


a  requirement  that  part  of  the  wages  be  set  down 
every  pay  day,  and  this  is  deducted  from  what  is  due. 

Physical  culture  is  assured  by  athletic  societies, 
and  helpful  direction  of  exercise  In  the  gymnasium 
and  games.  This  is  an  element  which  ought  never 
to  be  neglected  with  growing  adolescents. 

The  continuation  school  may  be  organized  and 
supported  by  the  corporation  or  by  the  town,  with 
a  subsidy  from  the  corporation. 

American  conditions  are  in  many  respects  unlike 
those  in  Germany,  and  our  methods  of  vocational 
training  must  take  account  of  these  differences. 

One  difficulty  in  working  the  plan  of  cooperation 
between  the  school  and  the  shop  is  to  secure  the 
proper  facilities  for  practice.  Only  very  large  con- 
cerns can  afford  to  set  apart  rooms,  machinery  and 
instructors  for  training  apprentices.  The  firm  which 
trains  may  not  receive  the  benefit  of  the  skilled  serv- 
ice it  has  helped  to  develop. 

Since  the  general  public  has  a  pecuniary  Interest 
and  duty  It  would  seem  logical  to  distribute  the  bur- 
den of  cost  between  local  schools,  employers  and 
the  commonwealth.  And  this  principle  Is  actually 
recognized,  as  at  Beverley,  Massachusetts.^ 

The  Illinois  State  Federation  of  Labor  cites  with 
approval  a  passage  from  the  writings  of  the  distin- 
guished educational  philosopher.  Professor  John 
Dewey:  "Xo  question  under  discussion  in  education 
is  so  fraught  with  consequences  for  the  future  of 
democracy  as  the  question  of  Industrial  education. 

^  United  Shoe  jMachincry  Co. 
208 


Education  and  Culture 


Its  right  development  will  do  more  to  make  public 
education  truly  democratic  than  any  other  one  agency 
now  under  consideration.  Its  wrong  treatment  will 
as  surely  accentuate  all  undemocratic  tendencies  in 
our  present  situation,  by  fostering  and  strengthen- 
ing class  divisions  in  school  and  out.  It  is  better  to 
suffer  for  a  while  longer  from  the  ills  of  our  present 
lack  of  system  till  the  truly  democratic  lines  of  ad- 
vance become  apparent,  than  to  separate  industrial 
education  sharply  from  general  education,  and  there- 
by use  it  to  mark  off  in  the  interests  of  employees  a 
separate  class  of  laborers." 

On  the  basis  of  the  principles  thus  stated  the  Fed- 
eration declares:  "We  disapprove  the  setting-up  of 
any  separate  state  or  distinct  board  of  administra- 
tion to  have  charge  of  vocational  education.  We 
believe  that  the  vocational  school  courses  should  at 
all  times  be  under  the  guidance  and  control  of  the 
school  authorities  having  direction  of  general  educa- 
tion, as  the  system  best  adapted  to  educate  properly 
our  children  for  their  future  activities  as  citizens,  as 
workers,  and  as  men  and  women  capable  of  partici- 
pating in  all  the  benefits  and  enjoyments  of  a  higher 
civilization." 

Strong  objections  are  urged  against  various  Euro- 
pean school  systems  on  the  ground  that  the  tuition 
fees  are  a  barrier  to  education  when  the  income  Is 
small;  that  the  social  position  of  a  child  is  practically 
fixed  at  the  age  of  ten  years;  that  only  the  children 
of  rich  people  have  a  chance  at  higher  education; 
that  specialization  In  Industry  begins  too  early  and 

209 


Citizens  m  Industry 


tends  to  reduce  the  apprentice  to  a  mere  piece  of 
animated  machinery. 

In  the  United  States  many  schools  have  been 
maintained  in  great  mercantile  establishments  em- 
ploying hundreds  and  thousands  of  boys  and  girls 
who  have  been  compelled  to  leave  school  to  earn  a 
living  and  whose  education  should  be  continued. 
Where  a  system  of  public  continuation  schools  is  al- 
ready well  established  these  shop  schools  would  not 
be  necessary,  except  for  the  technical  training;  but 
during  the  transition  stage  they  may  render  a  valu- 
able service. 

Where  a  brief  school  period  is  used  by  the  employ- 
ing firm  to  evade  the  compulsory  school  law  require- 
ments there  is  sometimes  bad  faith  and  poor  instruc- 
tion; a  school  is  not  likely  to  be  an  advantage  under 
such  conditions;  the  motive  must  be  genuine,  and  the 
educational  ideals  must  not  be  debased.  The  curric- 
ulum may  be  like  that  of  a  continuation  school,  with 
classes  in  reading,  writing,  arithmetic,  English,  spell- 
ing, stenography,  commercial  geography,  law  and 
business  methods.  To  this  systematic  instruction  in 
elementary  subjects  may  be  added  measures  of  rec- 
reation and  general  culture:  military  exercises,  band, 
bugle  corps,  glee  clubs,  orchestra,  chorus  singing, 
mandolin  clubs,  dramatic  performances,  concerts,  va- 
cation camps,  boat  excursions,  library,  reading-room, 
gymnasium,  swimming  pool. 

It  Is  affirmed  by  those  who  have  tried  the  experi- 
ment that  such  schools  improve  the  health,  vigor 
and  endurance  of  the  young  people,  the  methods  of 

210 


Education  and  Culture 


work,  character,  morality  and  outlook  of  the  person- 
nel. "Unintelligent  and  wasteful  labor  has  lessened. 
The  wisdom  of  cooperation  and  mutual  helpfulness 
has  been  recognized.  Knowledge  of  merchandise, 
Its  production,  distribution,  and  uses  has  been  in- 
creased. Principles  of  control,  government  and  or- 
ganization have  developed." 

Union  of  Employing  Companies. — The  National 
Metal  Trades  Association  Is  an  illustration  of  a  sig- 
nificant tendency.  This  society  has  for  its  declared 
purpose  "to  secure  and  preserve  equitable  conditions 
In  the  workshops  of  members  for  the  protection  of 
both  employer  and  employee,"  and  "Investigation 
and  adjustment  of  questions  arising  between  mem- 
bers and  their  employers."  They  have  promoted  the 
movement  to  Improve  Industrial  education  by  equip- 
ping a  technical  Institute  In  one  city;  by  securing 
scholarships  for  apprentice  pupils  In  such  schools; 
by  cooperating  with  the  school  directors  in  manage- 
ment; by  opening  their  shops  for  practice  to  students 
of  the  engineering  department  of  the  University  of 
Cincinnati;  by  inducing  the  Y.  M.  C.  A.  In  Cleveland 
to  provide  Instruction  to  boys  whom  the  society  aided 
and  gave  opportunity  to  attend  classes;  by  cooperat- 
ing with  the  National  Association  for  the  Promotion 
of  Industrial  Education;  by  stimulating  and  aiding 
technical  schools  in  several  cities  to  instruct  their 
apprentices.  This  union  of  efforts  concentrates  re- 
sources and  at  the  same  time  diffuses  the  Ideas  of  the 
foremost  leaders  and  specialists.  Profit-sharing  and 
bonus  schemes  are  carefully  studied;  safety  appli- 

211 


Citizens  in  Industry 


ances,  shop  hygiene  and  instruction  of  workmen  in 
methods  of  preventing  injuries,  and  compensation 
laws,  have  all  been  made  the  subject  of  discussion 
and  action.^ 

The  National  Association  of  Manufacturers  is  a 
strong  ally  of  the  movements  for  continuation 
schools,  a  modern  apprenticeship  system,  trade 
schools  and  compulsory  education  during  adoles- 
cence, more  effective  truancy  laws,  training  of  teach- 
ers for  industrial  practice,  shop  and  part-time 
schools  and  centers  of  vocational  guidance. 

The  Association  of  Cooperative  Schools  aims  to 
Improve  the  instruction  in  schools  for  the  employees 
of  corporations.  It  has  been  asserted  that  already 
the  movement  has  secured  the  cooperation  of  com- 
panies representing  a  capital  of  more  than  two  bil- 
lion dollars,  and  employing  230,000  persons.^  The 
corporations  have  discovered  that  they  cannot  find 
mechanics,  clerks  and  salesmen  ready-made,  and  that 
all  can  be  improved  by  education.  They  welcome  the 
disposition  of  public  high  schools,  colleges,  techni- 
cal schools  and  universities  to  cooperate  with  the 
business  world;  but  they  see  that  If  they  are 
to  receive  returns  for  their  Investments  they  must 
have  some  direct  control  of  the  methods  em- 
ployed. 

The  commercial  bias  is  not  seldom  seen  in  the 
tendency  to  emphasize  the  purely  technical  training 

^Robert  Wuest:  Article,  Annals  of  American  Academy, 
Nov.,  1912,  76  ff. 

2  The  Dodge  Idea,  July,  1913. 

212 


Education  and  Culture 


required  by  the  process  of  the  particular  establish- 
ment. 

But  it  is  interesting  to  notice  in  the  curriculum  of 
a  salesmen's  school  such  topics  as  the  value  of  right 
thinking,  courtesy,  what  to  learn,  hygiene,  elements 
of  psychology,  policies  and  organizations  of  the 
company. 

Advocates  of  "Scientific  Management"  seek  to 
demonstrate  the  value  of  their  methods  in  relation 
to  that  education  which  leads  to  advancement  in  the 
craft.  The  word  "education"  is  used,  apparently, 
as  a  synonym  for  vocational  training,  and  sometimes 
connotes  a  rather  narrow  conception  of  education. 
This  would  do  little  harm  if  the  other  and  larger 
elements  were  not  ignored  or  kept  in  the  distant  back- 
ground. The  zealous  advocates  of  the  recently  an- 
nounced "science"  of  management  owe  it  to  the 
world  to  make  clear  that  they  use  the  word  in  a  very 
limited  meaning;  and  this  they  have  not  always  been 
careful  to  do.  This  criticism  does  not  touch  the 
really  valuable  service  rendered  by  the  new  and 
brilliant  school  which  has,  within  its  sphere,  already 
accomplished  marvelous  results.  It  has  made  the 
world  its  debtor  by  applying  the  precise  and  exact 
methods  of  scientific  minds  to  the  shop,  by  provid- 
ing textbooks  and  instruction  cards  which  substitute 
measured  and  clear  descriptions  for  guesswork,  and 
by  sending  into  the  factories  and  mills  teachers  rather 
than  bosses.  They  deserve  all  praise  (and  good 
pay)  for  transforming  the  work-place  from  a  slave 
pen  into  a  school,  where  self-respecting  workers  take 

213 


Citizens  in  Industry 


part  in  the  Intellectual  life  and  help  to  apply  the 
principles  of  chemistry,  physics  and  biology  to  the 
manufacture  of  desirable  commodities.  As  one  has 
said:^  the  workman  "finds  that  the  engineer  in 
charge  is  wholly  ready  to  talk  and  explain  the  work 
that  is  going  on,  glad  to  receive  and  use  suggestions 
and  wholly  ready  to  recognize  the  practical  value 
of  the  thought  of  men  who  have  been  working  on  a 
given  type  of  work  for  years.  He  finds,  moreover, 
that  these  engineers  are  proceeding  on  certain  basic 
principles,  that  they  are  working  to  apply  to  industry 
the  best  that  science  has  accomplished,  and  that  they 
use  the  best  modern  scientific  methods  in  discovering 
the  unknown  in  industry.  There,  generally  for  the 
first  time,  the  worker  meets  the  open  mind  of  sci- 
ence, which  refers  all  questions  primarily  to  col- 
lected, correlated  and  recorded  fact  Instead  of  to 
any  man's  guess  or  theory."  The  entire  procedure 
is  educational  in  form  and  spirit.  Clear  Instructions, 
illustrated  by  photographs,  blue-prints,  drawings, 
take  the  place  of  hasty  and  noisy  commands  of  an 
untaught  foreman,  who  is  sometimes  too  vociferous 
to  be  understood.  "The  old  foreman  was  a  com- 
mander and  a  driver.  The  functional  foreman  of 
scientific  management  is  a  teacher  and  cooperator. 
The  old  foreman  ordered.  The  new  functional  fore- 
man teaches,  clears  the  path,  and  shows  the  way. 
Many  qualities  arc  desirable  in  a  functional  fore- 
man, but  these  things  are  absolutely  essential:  power 

1  Hollis  Godfrey,   Sc.D.,  Consulting  Engineer,  in  Annals 
American  Academy,  Nov.,  1912,  59  ff. 

214 


Education  and  Culture 


to  do  and  do  well  any  task  or  lesson  given  to  a 
worker;  power  to  express  to  the  worker  the  best  way 
of  doing  a  task;  and  willingness  to  cooperate  with 
the  worker  in  working  out  the  accomplishment  of  a 
task." 

Testing  Vocational  Ability  in  Actual  Practice. — 
It  has  been  found  that  the  psychological  tests  of  the 
laboratory,  even  in  expert  hands,  are  Inadequate 
and  must  be  supplemented  by  study  of  the  home,  the 
associations,  the  activities  of  the  subject  in  all  rela- 
tions and  situations,  A  precocious  boy  may  fail  in 
the  handling  of  tools,  while  an  apparently  dull  child 
may  be  mentally  awakened  when  he  turns  from 
books  and  the  passive  conditions  of  a  schoolroom  to 
the  occupations  of  garden  or  forge.  Furthermore, 
success  depends  on  many  factors  which  cannot  be 
measured  with  instruments  of  precision  but  are  re- 
vealed in  prolonged  observation  of  conduct.  Perse- 
verance, fidelity,  willingness  to  take  orders,  punctu- 
ality and  honesty  are  not  easily  discovered.  Staying 
power,  the  long  breath  of  the  distance  runner,  can  be 
found  out  with  certainty  only  at  the  end  of  months 
of  trial ;  and  the  boy  who  is  victor  in  a  short  run  may 
be  defeated  in  a  race  which  requires  prolonged  exer- 
tion. 

How  Young  Workers  Change  Tasks. — Miss 
Anne  Herkner  of  the  Maryland  bureau  of  labor  hit 
upon  one  essential  weakness  of  the  existing  system 
of  labor  as  applied  to  juveniles.  She  observed  in 
her  testimony  before  the  federal  industrial  relations 
commission  that   1,400  children  had  changed  their 

215 


Citizens  in  Industry 


positions  in  Maryland  since  January,  of  whom  only 
200  had  found  new  places  within  a  week.  A  great 
many,  of  course,  found  work  again  only  after  several 
weeks  or  several  months.  This  is  typical  of  the  con- 
ditions in  which  untrained  children  of  fourteen  to 
eighteen  years  find  themselves.  Instability  marks 
their  every  move.  They  are  not  contented  long 
in  any  work.  Their  interest  Is  not  in  it.  They  are 
moved  chiefly  by  the  possibility  of  getting  a  dollar 
or  two  a  week  more  in  some  other  job.  Permanency 
has  no  place  in  their  thoughts.  They  are  following 
no  definite  plan  or  aim.  Life  becomes  for  them 
merely  a  hunt  for  jobs  interspersed  by  an  occasional 
period  of  work  in  some  more  or  less  uncongenial 
occupation.  As  Miss  Herkner  remarked,  juvenile 
employment  must  be  steady  if  children  are  not  to 
lose  their  respect  for  work  and  if  they  are  to  ac- 
quire steadiness  of  character.  The  prospects  for 
this  shifting  population  of  juvenile  workers,  then, 
are  not  bright.  Evidently,  lest  their  numbers  be 
added  to  materially  each  year,  a  system  of  voca- 
tional education  must  be  generally  adopted.  Only 
in  this  way  is  the  interest  of  the  young  worker  to 
be  gained  and  his  efforts  turned  in  a  definite,  pur- 
poseful direction  that  promotes  useful  services  and 
good  citizenship. 

One  of  the  advantages  of  the  best  plans  of  trade 
training  under  broadminded  instructors  in  shops  is 
personal  adaptation  to  the  inevitable  fluctuations  in 
demand  for  specific  kinds  of  labor,  fluctuations 
which  increase  enormously  the  amount  of  involun- 

216 


Education  and  Culture 


tary  seasonal  unemployment  in  the  land.  The  point 
is  clearly  stated  by  Dr.  Godfrey:  "One  of  the  great- 
est barriers  to  permanency  of  employment  is  the  un- 
evenness  of  work  in  different  departments  of  a  fac- 
tory at  different  periods  of  the  year,  a  condition  es- 
pecially evident  in  those  factories  dealing  with  a 
seasonal  trade.  One  month  departments  A  and  B 
are  rushed  and  the  men  in  departments  C  and  D  are 
laid  off.  The  next  month  the  case  is  reversed  and 
the  men  are  laid  off  in  departments  A  and  B,  while 
the  work  is  rushed  in  departments  C  and  D.  The 
science  of  management  by  its  studies  of  the  relation 
of  sales  to  types  of  product,  by  its  increase  of  pro- 
duction and  by  its  general  advances  in  the  conduct  of 
industry,  tends  to  do  away  with  this  condition,  but 
it  also  works  specifically  against  this  state  of  affairs 
by  offering  education  along  the  lines  of  work  in  de- 
partments C  and  D  and  vice  versa,  enabling  them  to 
gain  such  mastery  of  different  parts  of  their  trade 
as  shall  give  them  permanent  employment  in  differ- 
ent departments  and  paying  them  higher  wages  for 
each  educational  advance." 

If  to  this  is  added  a  bureau  of  registration  of 
employees,  so  that  numbers  of  the  regular  staff  are 
first  chosen  for  the  vacant  places  when  demand  is 
greatest,  the  security  of  employment  is  greatly  en- 
hanced. 

LIBERAL    CULTURE 

It  is  reasonable  to  expect  that  when  the  more  di- 
rectly technical  training  has  been  imparted  and  be- 

217 


Citizens  in  Industry 


come  a  matter  of  routine,  habit,  and  automatic  cere- 
bration, a  demand  will  be  felt  for  liberal  cul- 
ture in  the  sciences  and  humanities.  Even  if  atten- 
tion must  be  focused  on  efficiency  and  profits  In  the 
narrow  sense,  the  springs  of  deeper  human  needs 
will  assert  themselves,  and  corporation  managers 
will  see  it  to  their  advantage  to  satisfy  the  hunger 
of  the  better  nature.  It  is  impossible  to  foretell, 
in  advance  of  experience,  what  is  "practical"  and 
what  will  best  promote  "efficiency."  One  psycho- 
logical fact  ought  to  be  clear  by  this  time  that  a 
wooden  puppet  cannot  do  the  work  of  a  man  who 
is  alive  to  his  finger-tips  and  whose  entire  mental 
and  moral  power  is  creatively  asserted  in  all  he  does. 
The  philosophy  of  the  "One-Hoss  Shay"  is  not  obso- 
lete:  "the  weakest  spot  must  stand  the  strain";  and 
we  must  "make  that  spot  as  strong  as  the  rest." 

Instruction  in  Housekeeping. — The  public  schools 
do  not  always  give  training  to  girls  in  the  art  of 
home-making,  and  girls  who  have  gone  into  factories 
to  earn  a  living  are  not  by  that  experience  prepared 
for  their  duties  as  wives  and  mothers.  The  imme- 
diate pecuniary  interest  of  the  employers  in  giving 
this  form  of  instruction  is  not  very  obvious  at  first 
sight;  but  thoughtful  managers,  in  Europe  and 
America,  have  discovered  that  there  is  a  close  con- 
nection between  well-ordered  homes  and  the  effi- 
ciency of  the  men.  Employed  girls  of  sixteen  will  in 
two  or  three  years  be  home-makers  for  the  young 
men  of  the  works.  By  taking  a  large  view  of  the 
permanent  and  community  interests  they  have  been 

2i8 


Education  and  Culture 


led  to  maintain  housekeeping  schools  of  various 
forms.  In  the  better  schools  the  instruction  of  the 
girls  is  given  during  working  hours  and  without  de- 
ductions from  wages.  Instruction  Is  free.  In  other 
situations  the  classes  are  held  In  the  evening.  Among 
the  subjects  taught  are :  mending  and  crocheting,  sew- 
ing, cutting  garments,  cooking,  making  beds.  The 
care  of  infants  and  young  children  ought  to  be  taught 
the  older  girls  and  a  technique  has  already  been 
worked  out  for  this  vital  branch  of  Instruction. 

Boys'  Gardens. — The  art  of  gardening  is  inter- 
esting to  many  boys,  but  In  cities  they  cannot  provide 
land,  tools  and  Instruction.  Manufacturers  have  no 
direct  Interest,  as  manufacturers,  in  providing  and 
maintaining  schools  for  communicating  this  art,  but 
as  citizens  caring  for  the  wholesome  conditions  about 
their  works  they  are  often  willing  to  contribute  for 
the  purpose.  The  lads  under  a  good  leader  are  dis- 
ciplined In  promptness,  Industry,  neatness,  workman- 
ship, courtesy,  cooperation,  and  the  material  earn- 
ings may  become  a  motive  to  perseverance.  With 
the  right  kind  of  a  teacher  the  industry  becomes  an 
Introduction  to  the  principles  of  the  science  of  life. 
Not  Infrequently  acquaintance  with  gardening  opens 
a  congenial  and  lucrative  profession  under  the  whole- 
some conditions  of  rural  residence. 

Perhaps,  since  manufacturers  live  literally  In  glass 
houses,  they  may  find  their  reward  in  giving  the  boys 
something  better  to  do  than  break  windows,  and 
destroy  property.  When  each  boy  is  allotted  his  own 
plot  of  ground  and  given  the  product  he  learns  to 

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Citizens  in  Industry 


respect  private  property;  any  latent  communistic 
quitch  in  him  is  weeded  out  by  the  practice  of  gar- 
dening. If  the  boys  are  taught  to  form  a  stock 
company,  "with  hmited  Habihty,"  they  elect  their 
own  directors  and  officers  and  thus  are  initiated  into 
the  mysteries  of  the  great  business.  With  the  gar- 
dens may  be  connected  shops  for  making  window- 
boxes,  repairing  tools,  etc.  Useful  occupation  is 
even  better  than  games  to  keep  young  people  out  of 
mischief,  and  turn  them  from  hooliganism  to  good 
citizenship. 

Landscape  Gardening. — The  cultivation  of  flow- 
ers, vines,  shrubs,  trees,  and  vegetables  develops  the 
esthetic  capacities  of  human  beings.  Certain  heads 
of  industrial  establishments  have  not  only  set  a  good 
example  by  beautifying  the  grounds  of  the  work- 
place, but  have  stimulated  and  guided  the  efforts  of 
neighbors  and  employees  by  giving  out  seeds  and 
bulbs  with  directions  for  planting  and  care,  and  by 
offering  prizes  for  those  who  succeed  best. 

Culture  for  Adults. — It  Is  sometimes  claimed  that 
workmen  want  wages,  not  entertainments  and  cul- 
ture; that  they  prefer  to  find  their  own  ways  of 
happiness.  But  there  are  numerous  situations  in 
which  workmen  cannot  organize  their  own  cultural 
opportunities  and  must  live  a  starved  mental  life  or 
be  content  with  cheap  and  mean  entertainments  fur- 
nished on  a  mercenary  basis.  There  are  employers 
who  recognize  their  responsibility  as  permanent  and 
Influential  personages  in  the  community,  and  who  see 
that  intellectual  alertness  and  joyful  disposition  of 

220 


Education  and  Culture 


the  employees  are  assets.  Under  such  conditions  a 
reasonable  provision  for  spiritual  satisfactions  may 
be  not  only  a  community  duty  but  a  paying  invest- 
ment. While  the  coming  democracy  is  on  the  way 
the  masters  on  the  ground  must  do  their  duty.  The 
patriarchal  element  of  civilization  which  we  have 
inherited  through  no  fault  of  our  own  has  not  yet 
evaporated  and  as  yet  no  complete  substitute  has 
been  found. 

Culture:  An  Illustration. — Van  Marken  in  Hol- 
land began  by  building  lOO  picturesque  cottages  with 
small  gardens  attached,  because  otherwise  no  proper 
shelter  was  available  near  the  works.  Kindergar- 
tens and  schools  were  needed  and  supplied,  and  the 
children  were  encouraged  by  prizes  to  do  good  work. 
The  people  needed  a  hall  for  assemblies  and  one  ac- 
commodating 1200  persons  was  built.  The  cultiva- 
tion of  flowers,  one  of  the  most  economical  and  sat- 
isfactory forms  of  esthetic  enjoyment,  was  promoted 
by  flower  shows  in  summer.  Band  concerts  were 
heard  three  times  a  week  in  winter.  Dances,  lec- 
tures, social  gatherings,  games,  stereopticon  lan- 
terns and  slides  added  to  the  gayety  of  the  community 
and  helped  to  keep  alive  friendship  and  neighborli- 
ness.  In  the  gymnasium,  which  was  thoroughly 
equipped,  the  young  people  were  trained  for  the 
sports  and  contests  which  furnished  delight  in  the 
village  festivals,  with  exhibitions  of  skill  in  archery, 
bowls,  skating  and  fencing.  The  playgrounds,  ad- 
joining the  community  house,  furnished  with  swings, 
teeters,  merry-go-rounds   and  sand  piles  made  the 

221 


Citizens  in  Industry 


children  happy.  Even  In  rainy  weather  they  could 
play  in  the  wholesome  open  air  under  a  pavilion. 

Art  for  Money's  Sake. — The  advantages  of  train- 
ing young  people  for  industrial  life  are  thus  out- 
lined in  the  British  Trade  Review: 

"In  view  of  the  foreign  competition  and  the  de- 
termination of  capitalists  abroad  to  extend  their 
manufactures,  it  is  of  the  utmost  importance  that 
British  producers  should  do  all  they  can  to  perfect 
their  industries  in  every  way,  to  be  in  a  position  to 
place  the  best  and  the  most  useful  goods  on  the  mar- 
ket. Experts  in  the  cotton  industry  are  realizing 
that  special  attention  should  be  given  to  the  highest 
branches  of  production,  especially  to  the  printing, 
dyeing  and  weaving  of  fancy  fabrics,  which  command 
very  extensive  markets.  It  is  recognized  that  if  we 
are  to  keep  our  trade  In  these  departments  both  man- 
ufacturers and  workers  must  be  qualified  to  send  out 
from  the  mills  and  weaving  sheds  fabrics  of  the  most 
original  design,  beautiful  in  texture  and  sterling  In 
workmanship.  The  need  for  continual  progress  In 
output  does  not,  of  course,  apply  to  the  cotton  In- 
dustry alone.  It  Is  conspicuous  daily  in  engineering 
and  numerous  other  branches,  and  the  question  of 
training  In  these  various  trades  has  become  para- 
mount. 

"It  Is,  therefore,  gratifying  to  note  that  manufac- 
turers are  beginning  to  take  an  Interest  In  the  young 
before  they  enter  the  works,  and  suggesting  that 
the  brightest  and  most  intellectual  should  be  sifted 
out  from  the  army  of  school  children,  for  Industrial 

222 


Education  and  Culture 


training.  Many  scholars  show  their  inclination  for 
particular  work  before  they  leave  school,  and  also 
ambition  to  succeed  in  special  occupations;  and  if  they 
were  given  opportunity  to  get  into  the  right  groove, 
production  and  trade  would  undoubtedly  benefit. 
The  shop  surroundings  may  be  made  beautiful.  .  .  . 
The  President  of  the  Bethlehem  steel  works  was 
jokingly  asked  by  a  visitor  who  was  delighted  with 
the  gardens,  whether  they  were  making  steel  or  rais- 
ing flowers,  and  he  answered:  'We  are  primarily 
engaged  In  making  steel;  but  we  make  better  steel 
and  more  of  It  by  also  raising  flowers  and  having 
them  In  our  yard.'  The  love  for  beautiful  spaces 
adorned  with  color,  once  awakened,  extends  to  the 
homes  of  the  men.  The  production  of  commodities 
depends  on  energy  and  endurance;  energy  Is  sup- 
plied by  digested  food;  digestion  is  promoted  by  at- 
tractiv^e  surroundings;  therefore  the  planting  of 
flowers  Is  a  factor  In  eflScIency,  even  In  the  making  of 
coarse  wares." 

It  Is  easy  to  assert  that  wage-earners  do  not  want 
such  facilities  supplied  and  will  not  use  them;  but 
the  assertion  is  not  In  all  circumstances  true. 

Reading-rooms. — Men  to  whom  reading  Is  a  dif- 
ficult art,  with  meager  returns  In  satisfaction,  must 
be  helped  to  find  pleasure  In  it;  then  they  have  dis- 
covered a  gold-mine  of  happiness.  The  lower  class 
of  newspapers  appeal  to  the  tired,  jaded,  half-illiter- 
ate crowd,  with  strong  sensations,  grotesque  pic- 
tures, stories  of  murders,  divorce  scandals,  wrongs 
of  the  rich,  pink  paper  and  great  staring  black  head- 

223 


Citizens  in  Industry 


lines  suggesting  explosions  and  catastrophes.  These 
journals  hav^e  a  pedagogic  theory  and  a  social  pur- 
pose which  they  are  ready  to  explain:  men  of  few 
and  primitive  desires  are  intellectually  asleep;  noth- 
ing short  of  thunder,  lightning  and  earthquake  will 
rouse  them;  and  so  the  sensational  journal  becomes 
"yellow";  its  odor  and  taste  remind  us  of  cheese 
which  is  disgusting  to  refined  organs  but  gives  a  sen- 
sation of  being  alive  to  the  dull  and  sordid.  There 
is  just  enough  of  sound  psychology  and  pedagogy  in 
this  plea  to  make  it  plausible;  of  course  the  real  mo- 
tive is  profit;  it  pays.  If  ever  these  weary  and  dull 
men  are  actually  improved  and  enriched  in  the  higher 
life,  redeemed  from  mere  animalism,  sensational 
journalism  will  not  lift  them  high  nor  carry  them 
far. 

The  better  principle  is  this :  good  literature,  mu- 
sic, pictures  must  be  brought  near  to  the  untaught 
workers,  must  be  attractive  and  enticing  to  them, 
not  merely  to  us.  Books  and  magazines  will  appeal 
to  a  few;  moving  pictures  are  alluring  to  all  of  us. 

We  do  not  want  histories  of  art  works,  dull  com- 
mentaries in  hard  technical  cant,  but  the  works  of 
imagination  themselves  presented  to  eye  or  ear  by 
intelligent  and  living  interpreters.  In  the  great 
dramatists  and  novelists  there  are  vast  treasures  of 
imaginative  wealth  which  arc  concealed  in  forbidding 
books,  and  await  the  genial  Interpretation  of  read- 
ers whose  pleasant  voices,  distinct  articulation,  play 
of  mobile  features  and  occasional  gesture  enable  the 
common  man  to  sit  at  the  banquet  prepared  by  ge- 

224 


Education  and  Culture 


nlus.  We  do  not  need  costly  singers  and  actors  so 
much  as  many  cultivated  readers  who  really  enjoy 
the  works  of  genius. 

A  motto  of  the  reading-rooms  of  the  Santa  Fe 
Railway  is  worth  quoting:  "Give  a  man  a  bath,  a 
book  and  an  entertainment  that  appeals  to  his  mind, 
and  you  have  enlarged,  extended  and  advanced  his 
life;  and,  as  he  becomes  more  faithful  to  himself,  he 
is  more  valuable  to  the  company."  "It  is  not  a  char- 
ity concern,  but  a  business  proposition."  Generally 
the  reading-rooms  of  this  corporation  are  at  points 
where  the  men  must  wait  long  turns  in  idleness;  in 
a  few  cities,  "on  the  theory  that,  the  better  the 
people  in  any  Santa  Fe  town,  the  safer  was  our 
property,  and  more  business  for  the  line  would  be 
developed.  Garnishment  for  gambling  debts  is  a 
thing  of  the  past.  One  general  superintendent  re- 
ports that  the  reading-rooms  constitute  the  best  pro- 
hibitory system  of  temperance  in  the  world,  beating 
Kansas  and  Maine." 

Settlements  in  the  neighborhood  of  a  great  mill 
or  factory  frequently  minister  to  the  scientific  and 
esthetic  desires  of  the  employees,  and  for  a  modest 
subsidy  from  managers  furnish  valuable  services  at 
low  cost.  But  it  is  better  to  let  them  starve  than 
to  bribe  the  residents  to  be  mummies,  mere  pets  of 
the  corporation  and  dull  lackeys  without  sympathy 
with  the  aspirations  of  the  wage-earners. 

Neighborhood  improvement  associations,  in  which 
educated  men  and  women  unite  in  democratic  fash- 
ion with  the  people,  may  justly  claim  support  on  the 

225 


Citizens  in  Industry 


principles  already  accepted.  In  these  cases  it  is  not 
a  question  of  philanthropy  in  any  narrow  and  sinis- 
ter sense,  but  of  good  citizenship  and  obligation  to 
the  whole  community.  Not  seldom  a  wealthy  cor- 
poration will  accept  the  self-denying  and  unpaid 
service  of  persons  of  public  spirit  and  be  reluctant 
to  give  them  the  slightest  recognition,  or  assistance, 
even  grumbling  at  times  under  breath  at  their  "so- 
cialism" or  "anarchistic  fads"  and  "academic  theo- 
ries."   This  makes  bad  blood. 

Revival  of  University  Extension,  zvith  Better 
Methods. — If  business  men  desire  to  assist  the  more 
intelligent  employees  to  gratify  their  intellectual  am- 
bitions in  the  fields  of  history,  literature  and  science, 
their  most  natural  alliance  is  with  the  universities. 
Here  Is  a  highly  organized  system  of  Instruction, 
conducted  by  specialists,  with  the  best  professional 
standards,  with  which  no  other  agencies  can  compete. 
These  universities  are  either  endowed  or  are  con- 
ducted by  the  states.  The  present  regular  profes- 
sors could  rarely  do  personally  much  of  the  actual 
work  of  classes  and  lectures ;  their  strength  Is  already 
mortgaged  to  their  special  duties,  and  most  of  them 
have  had  no  special  preparation  for  popular  instruc- 
tion. They  have,  however,  under  this  instruction  a 
large  number  of  graduate  students,  some  of  whom, 
with  proper  native  gifts,  could  be  selected  and  trained 
for  this  popular  work  of  education.  The  lecture 
method  alone  is  not  satisfactory.  In  teaching  nat- 
ural science  there  must  be  small  laboratory  classes. 
Historical,  literary  and  artistic  subjects  require  the 

226 


Education  and  Culture 


aid  of  lantern  slides  and  other  means  of  visualizing 
the  subject.  Music  at  the  meetings  should  give  zest 
and  rest  to  the  spirit. 

The  universities  have  very  inadequate  funds  for 
this  new  and  yet  undeveloped  department  of  "exten- 
sion" and  many  of  the  schemes  have  broken  down 
for  this  reason.  By  an  alliance  with  benefit  associa- 
tions and  generous  employers,  Instruction  and  even 
recreation  could  be  furnished  at  lowest  cost  and 
with  highest  standards.  Gradually  teachers  would 
be  selected  who  have  the  natural  genius  for  this 
kind  of  educational  service.  A  word  of  caution  and 
warning  is  in  place.  The  votaries  of  science  are 
accustomed  to  pursue  truth  without  regard  to  special 
interests,  and  to  present  all  aspects  in  the  spirit  of 
the  investigator.  Such  men  are  apt  to  say  things 
which  arouse  the  ire  of  those  who  are  unwilling 
to  have  anything  said  with  which  they  do  not  agree. 
They  would  not  object  to  lectures  interpreting 
Browning's  "Ring  and  the  Book,"  but  they  might 
explode  if  the  principle  of  collective  bargaining 
were  explained  with  historical  illustrations.  We 
have  known  of  teachers  of  social  science  being 
"fired"  under  these  circumstances  in  a  way  not  cred- 
itable to  those  who  imagine  that  a  money  payment 
for  salary  or  lecture  fee  means  the  purchase  of  a 
soul. 

This  caution  should  be  heeded  also  by  the  teacher, 
whose  function  is  not  that  of  the  advocate  who  holds 
a  brief  for  a  litigant  and  Is  hired  to  present  only 
one  side  of  the  case,  but  he  ought  to  reveal  the 

227 


Citizens  in  Industry 


whole  situation  as  fully  and  fairly  as  he  can  do  it 
and  leave  the  judgment  to  the  public. 

The  object  of  "university  extension"  is  not  pro- 
fessional learning,  as  preparation  for  law,  medicine, 
or  bridge-building;  nor,  on  the  other  side,  is  it 
merely  momentary  entertainment;  for  these  legiti- 
mate ends  other  means  ought  to  be  provided.  The 
object  of  the  university  extension  method  is  to  make 
it  possible  for  busy  people  in  various  callings  to 
gain  an  educated  man's  view  of  the  world,  of  life, 
of  science,  of  history,  of  evolution,  of  art,  of  phil- 
osophy, and  religion. 

Naturally  the  number  of  clerks  and  workingmen 
at  present  who  would  care  for  this  kind  of  culture 
at  first  will  be  small;  but  it  would  grow.  Here  is  a 
case  where  supply  calls  forth  demand.  Thomas' 
Orchestra  started  with  a  small  audience,  but  after  a 
lifetime  of  faithful  adherence  to  a  lofty  standard  of 
noble  music  the  great  leader  awakened  a  sense  of 
appreciation  of  the  best  compositions  in  hundreds  of 
thousands  of  people. 

We  must  not  give  superficial  instruction;  it  can 
be  made  fundamental  and  profound.  Who  can  ex- 
plain the  popular  and  genuine  interest  in  Darwinism 
and  Marxism  on  the  theory  that  workmen  are  stupid 
and  narrow?  One  of  the  best  masters  of  Herbert 
Spencer  in  the  writer's  acquaintance  was  a  machinist, 
who  also  bought  a  telescope  and  pursued  astronom- 
ical studies  after  he  was  seventy  years  of  age.  Back 
of  the  fragmentary  and  disconnected  new^s  items  of 
the  daily  papers  the  workingmen  need  to  have   a, 

228 


Education  and  Culture 


general  view  of  the  evolution  of  human  society,  the 
principles  of  ethics  and  economics,  the  essentials  of 
educational  aims  and  methods. 

If  we  are  to  have  wise  and  upright  local  govern- 
ment, we  must  have  at  least  cultivated  leaders 
among  the  workmen  in  our  shops  and  mines. 

An  alliance  of  welfare  associations  with  the  uni- 
versities would  be  fruitful  for  good  citizenship;  the 
entire  community  would  have  the  benefit;  and  the 
professors  would  profit  most  of  all  by  the  contact 
with  the  life  of  the  people.  The  young  teacher  of 
economics  who  gets  a  chance  to  lecture  on  his  sub- 
ject before  a  trade  union  may  have  a  surprise  in 
store  for  him;  he  will  find  that  whatever  kind  of 
coat  or  academic  gown  he  wears  he  must  be  pre- 
pared to  answer  keen  and  generally  caustic  ques- 
tions. 

Indeed  the  discussion  which  a  lecture  provokes 
has  more  educational  value  than  the  learned  "pre- 
liminary item." 

The  agricultural  schools  have  shown  that  plain 
farmers  can  understand  the  principles  of  biology 
and  apply  them  with  intelligence.  A  similar  work 
for  mechanics  carried  out  persistently  by  strong 
teachers  with  a  popular  gift  of  exposition  would 
discover  equal  ability  and  appreciation  among  them. 
Sir  Humphry  Davy  and  Huxley  were  not  ashamed 
to  give  popular  lectures  on  science. 

Dramatic  Entertainment. — The  life  of  any  indi- 
vidual has  a  good  deal  of  monotonous  routine  and 
repetition  and  therefore  becomes  stale.     It  is  not 

229 


Citizens  in  Industry 


surprising  that  many  youths  take  to  the  changeful 
ways  of  the  tramp,  hard  as  his  lot  is  when  the  winter 
pinches.  Josiah  Flynt's  "Tramping  with  Tramps" 
discloses  the  attractions  of  the  road,  the  green  fields, 
the  campfire,  the  constant  change  of  scene,  and  even 
an  occasional  risk  of  danger  and  taste  of  hunger. 
Responsible  family  men,  rooted  to  a  place  by  the 
care  of  the  household  and  the  claims  of  children, 
sometimes  feel  this  call  of  the  wide,  wide  world  and 
desire  to  travel.  But  travel  costs  money  and  time 
beyond  the  means  of  wage-earners,  and  so  the  crav- 
ing for  new  scenes  and  experiences  must  be  denied 
satisfaction.^ 

It  is  the  merit  of  the  drama  that  it  enables  a 
person  to  live  imaginatively  and  sympathetically  a 
thousand  lives,  one  after  the  other.  The  genius  of 
Shakespeare  and  many  inferior  artists  have  staged 
the  careers  of  kings  and  poets,  of  fools  and  philoso- 
phers, of  common  folk  and  great  personages,  and 
the  actors  interpret  these  representations  until  we 
seem  to  enter  into  the  lives  of  other  men  thus  exhib- 
ited in  action.  The  great  popularity  of  the  moving- 
picture  shows  is  a  revelation  of  this  deep  universal 
need  of  variety^;  but  taste  is  not  yet  standardized, 
commercial  interests  dominate,  and  the  educational 
values  are  low. 

When  a  large  body  of  employees  live  closely  to- 
gether and  isolated  from  the  city,  the  managers 
alone  may  be  able  to  organize  dramatic  entertain- 
ments.    In  Osaka,  Japan,  the  proprietors  of  a  great 

^  See  Prof.  Natorp;     Die  Erzichung  des  Volkes,  p.  8. 
230 


Education  and  Culture 


textile  mill  have  built  a  theater  on  their  grounds  and 
furnish  plays  which  afford  refined  and  ennobling 
recreation.^ 

Music. — The  people  are  capable  of  enjoying  good 
music.  Masterpieces  have  utilized  the  songs  of  the 
common  folk  as  foundations  for  noblest  classic  mel- 
odies and  harmonies.  The  workmen  in  Wales,  in 
English  and  German  cities,  have  not  only  listened 
with  appreciation  to  oratorios  but  they  have  Inter- 
preted them  worthily  in  chorus  singing.  It  is  true 
that  much  popular  music  Is  debasing  and  that  very 
complex  compositions  are  wearisome  to  the  multi- 
tude; but  there  is  a  rich  collection  of  classic  com- 
positions which  give  repose  without  enervation, 
which  Inspire  and  unite,  and  raise  the  spirits  of  men 
to  a  finer  world.  A  celebrated  and  competent  critic, 
Professor  Stumpf  of  Berlin,  mentions  here  works 
of  Bach,  Handel,  Haydn,  Mozart,  Beethoven, 
Schubert,  Weber,  Mendelssohn,  Max  Bruch,  Schu- 
mann, Franz,  Loewe,  Brahms  and  even  a  few  of 
Richard  Wagner's  pieces    (Ride  of  the  Valkiirles, 

^  Read  Goethe's  Conversations  with  Eckermann,  cited  by 
von  Ebart  in  Die  Erziehung  des  Volkes,  p.  104 : 

"Stande  ich  noch  an  der  Spitze  dcr  Theaterleitung,  ich 
wiirde  jetzt  zum  Besten  der  Kasse  noch  einen  Schritt  weiter 
gehen,  und  Ihr  solltet  erfahren,  dass  wir  das  notige  Geld 
nicht  ansbliebe.  Ich  wiirde  auch  die  Sonntage  spielen  lassen. 
Die  grosse  arbeitende  Klasse  die  an  den  Wochentagen 
gewohnlich  bis  spat  in  die  Nacht  beschaftigt  ist,  hat  den 
Sonntag  als  einzigen  Erholungstag,  wo  sie  dann  das  edlere 
Vergniigen  des  Schauspiels  dem  Tanz  und  Bier  in  einer 
Dorf schenke  sicher  vorziehen  wiird^' " 

231. 


Citizens  in  Industry 


the  Entrance  of  the  Gods  into  Valhalla)  as  making 
an  appeal  to  the  workers. 

Stumpf  urges,  as  a  practical  measure,  that  the 
tickets  to  such  concerts  must  be  very  low  in  price 
(8  to  10  cents),  that  the  arrangements  should  be 
made  by  a  committee  of  workmen  and  artists  to- 
gether, that  the  tickets  should  be  offered  and  sold 
by  the  employees  and  not  sold  in  public  offices,  so 
that  the  audience  will  be  made  up  of  genuine  wage- 
earners,  and  not  of  parsimonious  persons  who  want 
to  buy  fine  music  at  low  cost. 

Experience  has  shown  that  workmen  have  the 
desire  to  cultivate  their  inborn  capacity  for  esthetic 
enjoyment,  and  that  they  will  welcome  and  appre- 
ciate honest  efforts  to  smooth  their  way  into  the 
magic  world  of  beauty.  There  is  no  essential  dif- 
ference in  the  capacity  for  impressions,  and  there- 
fore the  selection  of  examples  of  art  must  not  be 
made  on  the  theory  that  we  are  dealing  with  per- 
sons of  inferior  nature.  The  power  to  enjoy  art  is 
most  surely  awakened  and  cultivated  by  original 
works,  as  those  of  great  painters  and  sculptors; 
copies  and  models  are  to  be  used  with  lectures  only 
in  a  secondary  way.  The  history  of  art  is  not  attrac- 
tive until  the  esthetic  sense  has  first  been  quickened 
by  contact  with  art  works.  A  competent  and  enthusi- 
astic teacher  will  induce  habits  of  observation  and 
direct  the  judgment;  and  for  this  purpose  a  few 
examples  carefully  studied  are  better  than  a  great 
number.  In  the  United  States  the  subjects  of  pic- 
tures may  well  be  chosen  in  such  a  way  as  to  meet 

232 


Education  and  Culture 


the  needs  of  our  mixed  population.  Parties  may  be 
formed  to  visit,  under  a  capable  guide,  the  munici- 
pal collections  which  are  being  formed  in  all  cities 
of  any  pretension  to  progress  and  enterprise.  Pho- 
tographs and  plastic  casts  may  be  used  when  origi- 
nals are  not  available.  Beautiful  objects  in  nature 
should  be  studied — flowers,  trees,  clouds,  landscapes, 
insects,  birds;  amateur  photography  may  be  encour- 
aged, and  drawing,  especially  painting  in  color. ^ 

^  See  Dr.  Lichtwart  in  Die  Erziehung  des  Volkes. 

John  Ruskin's  works  have  interpreted  this  world  of  beauty 
to  the  English-speaking  peoples. 

Valuable  hints  are  given  by  Benjamin  Ives  Oilman,  Sec. 
of  the  Museum  of  Fine  Arts,  Boston,  Mass.,  in  Report  of 
the  Commissioner  of  Education,  1913,  277  ff. 


CHAPTER    VII 

EXPERIMENTS  IN  INDUSTRIAL  DEMOCRACY 

During  the  nineteenth  century,  In  Europe,  Amer- 
ica, and  even  In  Asia,  the  wage-earning  opera- 
tives have  gradually  won  greater  legal  rights  of 
security,  protection  and  comfort.  They  have 
also  gained  recognition  of  their  right  to  vote 
and  hold  office,  until  now  It  is  quite  certain 
that  under  constitutional  governments  each  man's 
vote  must  count  for  one,  without  regard  to  title, 
rank  or  wealth.  This  right  has  been  won  with 
great  difficulty,  by  persistent  and  sometimes  fierce 
agitation,  or  even  through  revolution  and  blood- 
shed; but  It  Is  now  embodied  in  constitutions  and 
judicial  decisions,  beyond  recall  or  revision.  An- 
tagonism lingers  only  in  the  form  of  senile  grum- 
bling of  toothless  privileged  persons  about  the 
"good  old  days."  The  fundamental  reason  which 
has  been  decisive  In  this  victory  of  popular  suffrage 
has  been  that  no  class  of  men  could  be  trusted  to 
protect  the  interests  of  another  class.  This  is 
the  verdict  of  history.  Benevolent  despotism  is 
still  despotism,  and  Is  always  subject  to  suspicion. 

It  was  Inevitable  that  this  argument  drawn  from 
political  experience  should  some  day  be  used  in  re- 

234 


Experiments  in  Democracy 

gard  to  the  relation  of  employer  and  employees; 
and  it  has  been  used  with  convincing  effect  and  ex- 
plains a  great  deal  which  would  otherwise  seem 
unreasonable  in  certain  rules  and  actions  of  trade 
unions.  Socialism  has  had  a  wonderful  growth  in 
all  modern  countries,  and  its  fundamental  demand  is 
that  the  operatives  should  have  something  to  say  in 
regard  to  those  matters  which  affect  their  health, 
their  livelihood,  and  all  their  hopes  of  advance. 
Their  plea  has  been  successful  with  millions  of  vot- 
ers, because  anyone  can  see  that  the  ballot  opens  a 
way  to  securing  a  voice  In  business  affairs  which 
the  ordinary  shop  organization  excludes. 

The  trade  unions  are  concerned  about  labor  con- 
tracts which  raise  wages,  shorten  hours  and  improve 
shop  conditions;  but  this  is  not  the  deepest  motive 
In  their  desire  to  promote  collective  bargaining; 
they  want  more  than  all  else  a  voice  in  the  direction 
of  the  business  because  it  affects  them  in  every  way; 
and  because  they  know  or  instinctively  feel  that  self- 
government  is  the  only  just  government. 

This  is  not  the  place  to  repeat  the  familiar  argu- 
ments for  and  against  this  tendency  of  modern  work- 
ing people,  both  men  and  women.  It  seems  revo- 
lutionary to  men  who  are  not  ready  to  introduce 
democracy  into  the  industrial  order  because  they 
do  not  understand  the  modern  movement.  The  dif- 
ficulties in  the  way  of  public  management  of  Indus- 
try and  commerce  are  certainly  very  serious;  and 
It  would  be  difficult  to  Imagine  what  would  happen 
at  present  if  great  corporations  or  even  small  Indus- 

235 


Citizens  in  Industry 


tries  were  at  once  managed  by  committees  repre- 
senting the  employees  and  the  public  as  well  as  the 
owners  of  capital.  The  complete  realization  of  the 
democratic  aspiration  in  industry  must  wait  on  more 
general  education,  self-control,  skill  and  ability  than 
are  at  present  visible.  If  the  workingmen  were  now 
to  select  the  managers  of  industry  by  vote  they  would 
elect  the  same  men  who  are  now  directors,  or  they 
would  ruin  the  industries.  Selection  by  competition 
would  in  either  case  be  necessary  to  place  the  man- 
agement in  the  most  competent  hands. 

But  meantime  this  aspiration  is  a  social  fact  to  be 
counted  with,  and  any  fair-minded  person  must  ad- 
mit that  it  is  not  wholly  unworthy  and  foolish ;  it  is 
the  natural  result  of  progress.  Indeed  one  will  find 
that  already  many  able  capitalist  managers  have  at 
least  dimly  recognized  the  inherent  justice  of  the 
reasoning  and  taken  pains  to  foster  a  better  under- 
standing. The  acceptance  of  boards  of  conciliation 
and  arbitration  in  different  countries  Is  one  example 
of  a  tendency  the  logic  and  final  issue  of  which  will 
go  further  than  anyone  can  now  foresee.  The  social 
insurance  committees,  in  which  representatives  of 
employers  and  operatives  come  together  to  discuss 
and  decide  questions  of  common  interest,  not  only 
partly  satisfy  the  democratic  aspirations  of  working 
people  but  contain  a  prophetic  element  of  great  sig- 
nificance. They  also  serve  to  give  wage-earners 
some  experience  In  financial  matters  which  prepares 
them  for  understanding  the  perplexing  problems  of 
the  directors'   room,   the  bank,   and  the  boards  of 

236 


Experiments  in  Democracy 

trade.  The  cooperative  movement  in  Europe  is 
still  more  helpful  in  training  the  multitudes  in  busi- 
ness principles. 

This  conclusion  is  occasionally  recognized  by 
leaders  of  commerce.  Thus  Mr.  Frank.  Vanderlip, 
in  an  address  to  the  New  York  Bankers'  Associa- 
tion ( 1914),  said: 

"Legislation  in  accordance  with  sound  economic 
principles,  formulated  with  justice  and  sincere  sym- 
pathy, is  what  we  should  all  be  striving  for.  I  be- 
lieve if  business  men  will  get  themselves  into  a  state 
of  mind  where  they  view  conditions  broadly,  with  an 
historical  and  social  sense  rather  than  only  from 
their  Individual  point  of  view,  they  will  apprehend 
better  the  direction  in  which  the  whole  current  of 
political  thought  is  flowing,  and  will  feel  less  impa- 
tience with  this  legislative  movement  and  vastly  less 
pessimism  concerning  its  results.  It  seems  to  me 
time  that  we  recognized  and  caught  step  with  this 
wider  spirit,  and  then  endeavor  to  direct  the  move- 
ments which  it  has  set  in  motion  rather  than  to  ob- 
struct its  expression,  which  finds  a  form  in  new  or 
proposed  legislation." 

Under  universal  suffrage  there  can  be  no  doubt 
of  the  power  of  the  wage-earners  to  secure  control, 
or  at  least  a  voice  in  the  management  of  business; 
they  may  decide  some  day  to  exercise  this  political 
power.  The  chief  social  problem  is  that  of  educa- 
tional preparation  for  this  perilous  opportunity.  All 
those  methods  of  establishments  which  involve  dis- 
cussion of  business  matters   are  therefore  part  of 

237 


Citizens  in  Industry 


this  preparation  on  which  the  very  existence  of  the 
nation  may  some  day  depend.  The  policy  of  silence, 
secret  bribery,  concealment  and  confusion  cannot  in 
the  long  run  be  the  wisest  and  safest.  Democracy 
wills  to  be  taken  into  the  confidence  of  those  who 
manipulate  the  forces  of  industry  and  commerce. 

Representation  in  Management. — Beginnings  of 
experiments  of  admitting  employees  to  voice  and 
practice  in  management  have  already  attracted 
attention. 

An  interesting  type  is  the  following:^  In  1875  a 
"labor  chamber"  was  organized,  in  which  engineers, 
chief  clerks  and  foremen  formed  a  consultative 
body.  The  plan  was  modified  in  1895  and  became  a 
"labor  parliament"  with  three  houses:  (i)  twelve 
members  from  the  managers,  engineers  and  chief 
clerks;  (2)  eight  members  from  the  foremen  and 
clerks;  (3)  sixteen  of  lower  rank.  The  first  house 
meets  quarterly,  the  second  monthly,  and  the  third 
semi-monthly.  A  united  committee  is  formed,  with 
four  branches,  for  recreation,  education,  finance  and 
furtherance  of  material  interests.  The  branch  on 
material  interests  attends  to  provision  for  foodstuffs 
and  clothing  of  good  quality  and  low  price,  through 
the  village  cooperative  stores;  acts  as  a  council  on 
the  best  use  of  thrift  funds;  explains  the  regula- 
tions to  prevent  accidents  in  the  factory,  and  gives 
advice  about  hygiene  and  sanitation  in  homes.  The 
recreative  branch  has  subcommittees  on  musical  edu- 

1 W.  H.  Tolman :  Description  of  J.  C.  Van  Marken, 
Agenta  Park,  Holland.     World's  Work,  Mar.,  1902. 

238 


Experiments  in  Democracy 

cation  and  concerts,  choral  society,  gymnastics,  skat- 
ing and  rowing,  bicycling,  stereopticon  entertain- 
ments, lectures,  dancing,  home  recreation,  recep- 
tions, factory  holidays,  skittles,  archery,  billiards, 
Agenta  Park  and  travel  clubs.  It  is  true  that  none 
of  these  elements  involves  the  essential  control  of 
the  capital  invested  or  the  direction  of  the  tech- 
nical and  commercial  sides  of  the  business;  but  they 
are  matters  which  closely  touch  the  personal  inter- 
ests of  the  employees  and  the  organization  recog- 
nizes the  dignity  and  self-respect  of  the  workmen. 

The  building  and  loan  associations  of  the  United 
States,  so  far  as  they  represent  genuine  organiza- 
tions of  wage-earners,  are  among  the  most  signifi- 
cant business  enterprises  based  on  the  cooperative 
principle.  They  have  trained  men  to  think  in  terms 
of  large  figures  and  long  terms,  to  comprehend  the 
phenomena  of  capital,  interest  and  profit,  to  feel 
personally  the  value  of  mental  labor  in  direction  and 
management.  Their  very  mistakes  and  losses  have 
been  instructive  and  helped  men  to  see  that  the  busi- 
ness man  has  not  a  bed  of  roses.  Wherever  success- 
ful managers  of  industry  have  stimulated  and  encour- 
aged these  associations,  without  too  much  of  inter- 
ference, they  have  promoted  the  education  of  the 
people  for  a  share  in  government. 

The  Cooperative:  The  Rochdale  Plan,  and  Its 
Value  for  Training  in  Citizenship} — In  connection 
with  some  large  corporations  "societies  of  consum- 
ers" have  been  formed  for  the  purchase  of  supplies 

^  Fay :     Co-operation  at  Home  and  Abroad. 


citizens  in  Industry 


for  the  households.  Some  of  the  essential  condi- 
tions of  success  are  that  sales  shall  be  for  cash  and 
the  losses  of  credit  be  eliminated;  usually  the  con- 
sumer calls  for  the  goods  and  carries  them  home, 
to  cut  out  the  cost  of  delivery;  the  prices  paid  are 
those  of  the  market;  the  profits  are  divided  among 
the  purchasers  in  the  ratio  of  the  amount  bought 
during  the  year;  capital  invested  is  paid  only  a  low 
rate  of  interest.  The  educational  and  political  value 
of  the  association  lies  in  the  experience  it  gives  of 
the  principles  of  business  and  the  conditions  of  suc- 
cessful self-government.  If  ever  the  people  are  to 
be  prepared  for  a  larger  direct  control  of  business 
it  will  be  in  some  such  way  as  this,  and  not  merely 
by  listening  to  lectures  of  teachers  and  to  the  pas- 
sionate and  disjointed  harangues  of  demagogues. 

Education  in  Political  Science. — True  science  Is 
impersonal  and  impartial;  It  knows  no  partisan  In- 
terest; it  includes  all  the  pertinent  and  significant 
facts.  Already  employers  have  established  numer- 
ous schools  on  both  sides  of  the  Atlantic.  Natu- 
rally, as  we  have  already  seen,  the  industrial  effi- 
ciency motive  has  given  character  to  those  organiza- 
tions, because  that  is  the  primary  object  for  both 
partners  in  the  process  of  production.  But  it  Is  not 
enough. 

More  than  once  In  recent  years  bankers  and  other 
business  leaders  have  been  alarmed  by  the  preva- 
lence of  what  they  regarded  as  dangerous  popular 
heresies  In  relation  to  money,  banking,  currency  and 
tariff.     They  could  readily  see  that  It  was  a  vital 

240 


Experiments  In  Democracy 

concern  of  business  to  turn  the  minds  of  the  voters 
in  the  right  direction.  In  other  words,  they  were 
compelled  to  go  back  of  legislators,  congressmen, 
senators  and  even  newspapers  to  appeal  to  the 
farmers,  retail  dealers  and  mechanics.  And  they 
found  that  these  plain  people  could  understand 
when  a  great  statesman  like  Carl  Schurz  addressed 
them  in  the  clear  style  of  exposition  of  which  he 
was  master. 

It  is  probably  true  that  workingmen  have  given 
heed  to  falsehoods  and  have  been  deceived  in  regard 
to  high  tariffs  and  taxation  schemes.  But  that  is 
also  true  of  men  of  highest  educational  advantages; 
it  is  one  of  the  most  insidious  perils  of  popular 
government.  Stuffing  ballot  boxes  is  a  rude  and 
clumsy  device  as  compared  with  the  cunning  argu- 
ment which  persuades  a  wage-earner  to  vote  for  a 
scheme  which  will  inevitably  cut  his  loaf  in  half  and 
compel  him  to  wear  a  seedy  overcoat  two  more 
winters. 

Mistakes  will  happen;  but  they  grow  rarer  with 
discussion.  Running  water  will  at  last  purify- itself. 
Continue  the  give-and-take  process  long  enough  and 
the  truth  emerges  out  of  the  clouds,  and  the  shrewd- 
est deceivers  are  dragged  into  light  and  pilloried, 
stripped  of  masks.  Lincoln's  confidence  In  the  good 
sense  of  an  instructed  people  was  justified  by  history. 
When  Gladstone  went  wrong,  the  textile  workers  of 
English  cities,  though  starving,  saw  and  defended 
the  truth,  in  regard  to  our  cause  in  the  Civil  War. 

The  history  of  our  economical  and  governmental 
241 


Citizens  in  Industry 


institutions  is  a  matter  of  fact,  and  popular  knowl- 
edge of  this  history  helps  plain  men  to  see  how  our 
modes  of  conduct  have  been  shaped  and  what  they 
mean.  It  is  possible  for  a  good  teacher  to  help 
mechanics  to  understand  all  the  phenomena  of  our 
industrial  life,  the  reciprocal  connections  between 
the  different  industries  and  the  specialized  branches 
of  each  industry,  and  the  function  or  service  of  each 
agent  in  the  whole  system.  It  is  possible  for  a 
master  of  the  science  of  administration  to  teach 
voters  the  essential  principles  of  our  federal  and 
state  constitutions,  the  fundamental  rights  of  citi- 
zens and  the  methods  of  enforcing  these  rights. 

If  the  present  responsible  masters  of  society  sin- 
cerely wish  to  help  men  to  realize  their  personal  dig- 
nity and  take  their  places  as  citizens,  they  may  find 
in  these  fields  the  opportunity  for  a  patriotic  service. 
Of  course  this  teaching  must  be  scientific  and  not 
partisan;  the  teacher  must  be  free  to  speak  his  mind 
and  give  his  reasons;  and  the  men  in  the  classes 
must  be  free  to  express  their  own  views  in  open 
discussion.  Lecturing  alone  is  not  educating;  and 
if  workingmen  learn  of  books  and  instructors  they 
must  have  a  chance  to  take  the  initiative  in  discus- 
sion. Otherwise  they  will  either  absent  themselves 
or  they  will  resist  the  effort  to  treat  them  as  mere 
passive  automatons  to  be  moved  from  the  outside. 

Neighborhood  Centers. — The  modern  city  has 
destroyed  real  democracy  and  substituted  the  boss, 
partly  because  the  government  was  too  far  away 
from  the  people,  so  distant  that  its  inner  workings 

242 


Experiments  in  Democracy 

could  not  be  seen.^  Industrial  villages,  even  when 
founded  by  capitalists,  may  be  made  schools  of 
practical  training  in  politics  In  the  best  sense,  the 
science  and  art  of  community  action  for  the  general 
welfare. 

Industrial  towns  have  been  built  at  enormous  cost 
and,  surely  In  part  at  least,  with  unselfish  intention; 
neat,  tidy,  attractive,  hygienic,  and  with  moderate 
rents;  and  yet  have  sometimes  brought  the  builder 
dislike,  hatred  and  revolt  where  he  expected  grati- 
tude and  contentment.  There  was  one  fatal  mis- 
take— it  was  a  benevolent  despotism,  it  did  not  rec- 
ognize democracy,  It  Ignored  the  spirit  of  the  mod- 
ern man,  it  assumed  that  wage-earners  are  still  at 
heart  serfs.  It  is  better  to  have  some  dirt  and  dis- 
ease, with  community  responsibility  for  the  suffering, 
than  sanitary  houses  governed  by  an  absolute  even  If 
benevolent  czar,  and  benevolent  autocrats  have  been 
rare  In  history;  absolutism  hardens  the  conscience. 

The  public  schoolhouse  Is  becoming  a  social  cen- 
ter of  genuine  democracy;  the  common  meeting- 
place  where  all  have  the  same  rights;  where  recrea- 
tion, rest,  and  learning  have  a  natural  home.  Igno- 
rant people  can  be  taught  to  want  clean  houses,  alleys, 
and  underclothing,  and  they  can  be  persuaded  to 
change  their  habits;  but  it  must  be  their  own  act 
or  it  is  of  no  moral  or  practical  value. 

The  neighborhood  about  a  schoolhouse  Is  a  fine 
field  for  the  practice  of  democratic  self-government; 
and  ought  to  be  made  far  more  significant  than  it 

^  See  Kales :    Unpopular  Government. 


Citizens  in  Industry 


Is.  For  practice  In  the  privileges  of  citizenship 
propositions  relating  to  local  concerns  might  be  sub- 
mitted to  votes  of  initiative  and  referendum,  and  the 
results  sent  up  as  memorials  or  petitions  to  the  city 
council  or  administrative  commission  with  the  argu- 
ments used  In  discussion.  Later  on  some  direct 
weight  might  be  given  to  such  local  declarations. 

The  difficulty  with  the  present  custom  of  trusting 
all  to  the  elected  ward  councilman  Is  that  very  fre- 
quently the  real  wishes  of  the  people  never  get  to 
the  city  hall  In  their  purity;  they  are  adulterated  In 
the  committees.  An  ordinary  ward  election  Is  no 
adequate  means  of  educating  citizens;  for  the  dis- 
trict Is  too  large  and  the  interests  too  diversified 
for  direct  discussion.  There  Is  no  school  of  civic 
virtue.  One  can  teach  while  the  class  Is  small;  he 
must  lecture  If  there  Is  an  audience ;  he  must  harangue 
if  he  has  a  mob. 

In  the  school  district  a  man  of  business  may  be  a 
real  power;  an  employer  can  exercise  his  Influence 
If  he  will  come  to  the  meeting  with  a  soft  hat  and 
not  forget  his  good  manners  and  his  patriotism.  The 
employer,  or  the  representatives  of  a  corporation, 
must  learn  to  regard  their  mills  In  relation  to  the 
neighborhood,  and  the  people  of  the  neighborhood 
as  citizens,  not  subjects.  It  Is  a  bitter  lesson  for  a 
proud  spirit  to  learn,  but  It  is  wholesome  and  neces- 
sary. It  cost  a  bloody  war  and  countless  treasures 
to  realize  Lincoln's  prophetic  utterance:  a  nation 
cannot  endure  half  slave  and  half  free.  If  he  were 
among  us  now  he  would  say  a  neighborhood  cannot 

244 


Experiments  in  Democracy 

live  In  peace  under  a  lord,  an  exile  on  the  soil  it 
occupies  with  homes.  Property  is  safe  and  respected 
only  as  people  own  it,  and  authority  is  honored  only 
when  the  people  share  it. 

Already  the  people  have  the  supreme  power  in 
the  ballot  and  universal  suffrage;  it  is  a  question  of 
whether  Demos  can  be  educated  in  time  to  use  his 
power  wisely  when  he  becomes  fully  conscious  of  it. 
Neither  a  man  nor  a  people  is  fitted  quickly  for 
the  responsibility  of  political  control;  nor  is  educa- 
tion a  miracle :  it  is  a  process  and  a  growth,  and  is  ac- 
quired in  the  interaction  of  instruction  and  personal 
experience.  This  is  what  gives  the  neighborhood 
Its  national  significance. 


ORGANIZATION      AND      ADMINISTRATION      OF      BETTERMENT 

METHODS    WITHIN    AN    ESTABLISHMENT    OR    IN    A 

TRADE  ON   A   VOLUNTARY   BASIS 

The  fundamental  principles  of  such  organization 
taught  by  experience  have  already  been  discussed: 
recognition  of  the  personal  worth  of  the  employees, 
and  of  their  right  to  a  hearing  in  all  matters  which 
deeply  concern  their  happiness  and  well-being;. free- 
dom from  all  assertion  of  superiority  and  arbitrary 
domination  on  the  part  of  the  firm;  open  and  sin- 
cere dealings  without  concealment  of  facts  essential 
to  a  fair  judgment;  manifest  purpose  of  the  firm  to 
be  guided  by  a  comprehensive  recognition  of  all  in- 
terests affected,  even  of  the  surrounding  community 

245 


Citizens  in  Industry 


of  which  the  establishment  and  all  its  members  are 
organic  parts. 

There  is  in  some  very  large  corporations  an  ad- 
visory board  which  is  composed  of  superintendents 
of  the  various  plants,  which  may  be  situated  in  dif- 
ferent cities  at  a  distance  from  each  other;  although 
all  are  dependent  on  one  corporation. 

The  evils  to  be  combated  are:^  continual  irrita- 
tion and  frequent  strikes  on  many  pretexts,  with  loss 
of  time,  wages,  profits,  social  product.  In  the 
sweated  industries,  without  organization,  or  control, 
the  conditions  become  chaotic;  humane  employers 
cannot  raise  wages  because  they  are  in  close  and 
sharp  competition  with  others  who  are  quick  to  take 
advantage  of  the  necessities  of  the  ignorant  immi- 
grants whose  extreme  poverty  compels  them  to  earn 
what  they  can. 

The  employees  themselves,  in  such  circumstances, 
are  naturally  suspicious,  on  the  watch  for  causes  of 
offense,  reckless  in  fighting  back  blindly  against  any- 
one who  represents  "capital."  Their  animosity  is 
made  all  the  more  bitter  because  they  are  sometimes 
under  the  influence  of  a  class  of  Socialists  who  preach 
"class  consciousness"  and  sometimes  even  violence. 
To  the  economic  evils  are  added,  especially  in  the 
"sweated"  industries,  unhygienic  conditions,  as 
crowding,  bad  ventilation,  filth,  danger  from  fire, 
improper  sanitary  arrangements,  dangerous  proxim- 

"^  See  Gertrude  Barnum :  "How  Industrial  Peace  Has 
Been  Brought  About  in  the  Clothing  Trade."  Independent, 
Oct.  3,  1912, 

246 


Experiments  in  Democracy 

ity  and  exposure  of  the  sexes  to  contacts  and  tempta- 
tion. 

Experience  has  shown  that  in  very  difficult  situa- 
tions at  least  some  improvements  are  made  possible 
by  wise  organization,  in  which  the  following  princi- 
ples are  observed: 

1.  The  primary  organization  includes  represent- 
atives of  capitalist  managers  and  the  employees,  on 
equal  and  honorable  terms. 

2.  The  unions  of  the  employees  are  recognized, 
without  wasting  time  over  the  disputed  theory  of 
"closed  shop"  versus  "open  shop,"  about  which 
agreement  seems  at  present  impossible.  The  unions 
of  the  employees  are  recognized  and  respected,  and 
their  members  have  the  preference  when  employees 
are  taken  on;  hence  the  expression,  "the  preferen- 
tial shop  rule."  Union  hours  and  prices  are  ac- 
cepted, and  so  the  results  of  collective  bargaining 
are  assured. 

3.  The  spirit  and  something  of  the  form  of  ju- 
dicial procedure  are  seen  in  the  constitution  of  the 
lower  and  higher  "courts,"  in  which  questions  in 
dispute  are  carefully  weighed,  evidence  adduced,  and 
decisions  reached  by  a  rational  process  in  which  all 
parties  interested  may  be  heard  in  calmness  and 
quiet. 

The  board  on  grievances  meets  at  frequent  and 
regular  intervals,  and  goes  over  a  formal  calendar 
of  cases  as  if  in  a  civil  court.  If  this  court  fails  to 
agree,  or  there  is  a  desire  to  appeal,  a  higher  court, 
meeting  only  in  exceptional  cases  on  demand,  is  con- 

247 


Citizens  in  Industry 


stituted  to  make  final  settlement.  While  these 
"courts"  have  no  public  authority  to  enforce  their 
decisions,  their  judgment  is  usually  accepted  by  all 
parties  and  open  conflict  is  averted. 

4.  A  joint  board  of  sanitary  control,  composed 
of  members  representing  employers,  employees  and 
the  public,  has  been  able  to  lay  bare  gross  viola- 
tions of  laws  and  ordinances,  vicious  conditions  af- 
fecting health,  comfort  and  morality,  and  to  correct 
these  evils  by  influence  or  by  appeal  to  legal  au- 
thority. 

Fire  protection  has  been  improved,  after  a  fright- 
ful holocaust  due  to  lawless  neglect  of  plain  legal 
requirements.  Basement  shops,  ill  lighted  and  ill 
ventilated,  have  been  closed.  Shops  in  rear  rooms 
or  on  attic  floors  have  been  forbidden,  without  spe- 
cial permission,  on  a  showing  that  they  are  not  dan- 
gerous. 

A  standard  of  400  cubic  feet  of  space  per  person 
has  been  required  and  enforced.  The  rule  has  been 
established  that  the  workroom  must  be  thoroughly 
aired  before  and  after  work  hours,  and  during  lunch 
hours,  by  opening  windows  and  doors.  Floors  of 
shops  and  of  water-closets  are  scrubbed  weekly, 
swept  daily  and  kept  clean  and  tidy  all  the  time.  A 
separate  water-closet  apartment  must  be  provided 
for  each  sex,  with  solid  partitions  extending  from 
floor  to  ceiling,  and  with  separate  vestibules  and 
doors.  Wash-basins,  with  sufficient  supply  of  water, 
in  convenient  and  well-lighted  locations,  are  fur- 
nished in  each  shop.     Lockers   for  hanging  street 

248 


Experiments  in  Democracy 


clothing  must  be  provided,  and  separate  dressing- 
rooms  wherever  women  are  working.  All  seats 
must  have  backs. ^ 

The  plan  adopted  by  the  firm  of  Hart,  Schaffner 
and  Marx  has  worked  so  well  in  preventing  friction 
that  it  may  be  used  to  illustrate  a  desirable  tendency. 
The  essential  features  of  the  arrangements  are  these: 
a  kind  of  court  was  created  by  joint  action  of  em- 
ployers and  employees,  to  hear  all  complaints  and 
redress  grievances.  In  case  of  disagreement  a  board 
of  arbitration  would  hear  appeals.  No  person  was 
to  be  discharged  for  belonging  to  a  trade  union  and 
in  employment  union  members  were  preferred  in 
branches  where  there  was  an  effective  organization. 
''Briefly  expressed,  it  is  simply  the  natural  and 
healthy  relation  which  usually  exists  between  the 
small  employer  and  his  half-dozen  workmen,  artifi- 
cially restored,  as  far  as  possible,  in  a  large-scale 
business  where  the  real  employer  is  a  considerable 
group  of  executives  managing  thousands  of  workers 
according  to  certain  established  principles  and  poli- 
cies. .  .  .  The  successful  result  of  these  develop- 
ments has  depended  much  less  upon  the  formal  and 
external  features  than  upon  the  spirit  with  which  it 
has  been  worked  out."  Of  Mr.  Hillman,  the  leader 
of  the  workers,  Mr.  Schaffner  said:  "He  devel- 
oped a  wonderful  influence  over  all  people  who  came 
in  contact  with  him,  on  account  of  his  high  ideals,  his 

^  For  further  details  see  article  by  H.  Moskowitz,  Ph.D., 
in  Annals  of  the  American  Academy,  Nov.,  1912,  39  ff.,  and 
Bui.  U.  S.  Bureau  of  Labor  Statistics,  No.  144,  Mar.  19,  1914. 

249 


Citizens  in  Industry 


patience  under  trying  circumstances,  his  indomitable 
faith  in  the  ultimate  success  of  right  methods."  Mr. 
Schaffner  himself  said:  "I  believe  that  the  officers 
of  a  corporation  are  trustees  of  the  interests  of  all 
connected  with  the  institution,"  But,  fully  aware 
of  the  necessity  of  full  representation  of  conflicting 
interests,  he  added:  "Decisions  affecting  the  inter- 
ests of  any  group  should  not  be  made  until  such  in- 
terests have  the  opportunity  to  present  their  case. 
When  there  is  any  doubt  as  to  the  fairness  of  any 
decision  or  policy  there  should  be  a  disinterested 
tribunal  to  review  the  decision." 

Seeking  for  a  Basic  Principle  of  Agreement. — The 
evidence  taken  by  the  Federal  Industrial  Commission 
In  19 14  revealed  absolute  and  irreconcilable  antag- 
onism between  the  views  of  employers  and  leaders  of 
organized  labor.  They  could  not  agree  either  as  to 
facts,  standards  of  living,  theory  of  wages,  or 
measures  of  relief.  Under  such  circumstances  if 
men  do  not  fight  to  the  bitter  end  it  is  because  they 
have  not  the  power.  If  they  come  to  agreement  it 
is  a  truce  in  battle  to  bury  the  dead.  Men  who  be- 
lieve the  doctrine  that  all  the  product  of  industry  be- 
longs of  right  to  manual  wage-earners  and  none  to 
capitalist  managers  will  struggle  to  get  it  all,  just 
because  they  sincerely  believe  it  belongs  to  them,  and 
that  capitalist  managers  are  robbers;  those  who 
recognize  the  right  of  managers  to  wages  of  super- 
intendence will  grant  a  certain  limited  concession 
for  salaries;  those  who  recognize  the  justice  of  inter- 
est on  capital  will  concede  the  current  rate  out  of  the 

250 


Experiments  in  Democracy 

product;  but  at  "profits"  they  balk,  and  multitudes 
have  been  persuaded  that  "labor"  only  is  the  cause 
of  the  product  and  ought  to  own  it  all. 

On  the  other  hand,  the  statements  of  many  em- 
ployers showed  that  they  sincerely  believe  the  doc- 
trine that  when  market  wages  have  been  paid,  and 
the  work  has  been  done  under  decent  conditions,  and 
the  expenses  of  taxes,  insurance,  etc.,  have  been  paid, 
all  the  remainder  of  the  product  belongs  beyond 
question  to  the  capitalist  managers.  They  revealed 
their  belief  that  any  interference  from  trade  unions 
or  from  the  public  authorities  was  contrary  to  jus- 
tice, an  impertinence  and  an  evil;  that  they  were  to 
be  trusted  to  do  what  was  right  and  with  no  inter- 
ference or  coercion  from  any  outside  power. 

Economic  fVages. — One  enlightened  leader  of  a 
great  corporation  said,  in  discussing  welfare  meth- 
ods of  his  corporation: 

"Nor  have  we  attempted  to  pass  upon  the  ques- 
tion of  wages,  other  than  to  express  the  belief  that 
in  the  same  locality  they  should  be  fully  equal  to 
those  paid  by  any  other  employer  engaged  in  similar 
work.  Wages  are  a  local  and  independent  question." 
Here  is  no  explanation  of  how  the  "other  employ- 
ers" calculate  what  they  ought  to  pay.  The  competi- 
tive rate  Is  implied,  not  expressed. 

In  another  place  a  minimum  limit  is  suggested — 
"in  all  instances  being  enough  to  insure  good  health 
and  efficiency."  Here  is  at  least  the  beginning  of 
an  objective  and  scientific  standard  of  wages;  but 
beyond  the  immediate  capitalistic  Interest  in  a  large 

251 


Citizens  In  Industry 


product  from  "efficiency"  no  hint  is  given  that  the 
workman  has  other  needs  to  be  satisfied  if  he  is  to 
be  a  worthy  father,  husband,  citizen — human.  It  is 
this  evasion  of  fundamental  requirements  of  man- 
kind which  vitiates  a  good  deal  of  the  economic  dis- 
cussion of  wages.  Not  to  pass  upon  the  question  of 
wages  in  considering  schemes  of  welfare  work  Is  to 
neglect  the  supreme  economic  question  in  which  the 
wage-earner  is  Interested;  for  his  whole  life  de- 
pends on  wages.  If  others  neglect  that  problem  he 
cannot  and  will  not  consent  to  regard  it  as  a  sec- 
ondary issue.  Hitherto  even  these  public  commis- 
sions for  the  settlement  of  disputes  have  had  no  well- 
defined  and  generally  accepted  economic  or  ethical 
principle  upon  which  all  agreed.  A  compromise  is 
not  a  rational  method;  it  is  merely  a  temporary  de- 
vice for  avoiding  civil  war  and  Is  a  test  of  physical 
endurance. 

It  must  be  plain  to  well-informed  persons  that 
agreements  satisfactory  to  all  parties  in  interest 
must  be  based  on  some  standard  or  principle  ac- 
cepted by  all.  The  alternative  is  a  continued  war 
of  interests,  with  occasional  truces  for  the  combat- 
ants to  get  their  fighting  breath  and  renew  their 
energies  for  conflict;  or,  what  is  worse,  resort  to 
brute  force  and  suppression  of  all  discussion  and 
agitation.  This  last  condition  is  that  of  unorganized 
and  ignorant  laborers  whose  quiet  submission  is  pub- 
lished abroad  as  proof  that  they  are  satisfied,  con- 
tented and  happy — frequently  a  very  superficial  and 
false  judgment.      The  president  of   a   corporation 

2,-2 


Experiments  in  Democracy 

may  know  really  very  little  of  what  is  going  on  in 
the  minds  of  the  workmen  in  the  shops  or  mines;  he 
may  be  living  over  a  volcano  and  not  suspect  it. 

One  basis  of  agreement  is  affirmed  by  some  econo- 
mists of  distinction  and  accepted  by  many  capitalist 
managers:  the  theory  that  competition,  supply  and 
demand,  fix  the  rate  of  wages  on  a  just  level;  a  rate 
which  is  ethically  justified  because  it  is  declared  to  be 
practically  equivalent  to  the  value  of  the  products 
created  by  the  individual  wage-earner.  It  is  some- 
times asserted  that  this  rate,  being  fixed  by  "eco- 
nomic laws,"  cannot  be  changed  by  collective  bar- 
gaining, by  legislation  nor  by  humanitarian  impulses; 
or,  if  this  "natural  rate"  is  modified  by  such  arbi- 
trary and  artificial  methods  the  settlement  cannot 
last,  or  the  increase  must  be  paid  by  the  consumers 
of  the  product.  It  is  not  generally  conceded  that  any 
increase  of  wages  can  be  taken  from  the  profit  ele- 
ment of  the  product,  although  the  persistent  effort 
of  the  capitalist  managers  to  resist  the  rise  of  wages 
might  indicate  their  real  belief  that  the  profits  would 
be  affected  by  all  that  was  added  to  wages.  To  this 
interpretation  is  added  the  affirmation  that  if  wage- 
earners  would  improve  their  methods  and  be  more 
effective  and  industrious  they  would  increase  the 
product  and  so  automatically  secure  higher  wages. 
A  practical  deduction  from  this  line  of  reasoning  is 
that  any  attempt  to  raise  wages  by  collective  bargain- 
ing, legislation  or  any  other  conscious  and  concerted 
effort  must  fail. 

The  "sliding-scale"  method  of  adjusting  wages  to 

253 


Citizens  in  Industry 


the  rise  and  fall  of  the  commodity  produced  was 
based  on  some  such  theory;  wages  were  to  be  fixed  by 
considerations  of  the  market. 

The  trade  unions  and  their  adv^ocates  have  put 
forward  a  more  or  less  vague  theory  of  "a  living- 
wage  standard"  as  the  starting-point  for  discussion 
of  the  rate  of  wages.  Persons  of  this  school  of 
thought  affirm  that  industry  owes  to  workmen  a  sup- 
port for  themselves  and  their  families,  and  a  meas- 
ure of  support  which  will  enable  all  to  live  a  genu- 
ine human  life;  and  that  all  calculations  should  start 
with  this  foundation.  This  theory  requires  an  analy- 
sis, not  only  of  market  prices  but  also  of  family 
budgets;  the  assumption  being  that  the  community 
of  consumers  must  pay  all  the  cost  involved  in  this 
estimate  when  they  purchase  the  product. 

From  the  standpoint  of  a  particular  union  the 
standard  will  be  that  of  the  families  of  their  own 
group.  But  this  is  a  sectional  and  partisan  stand- 
ard. It  does  not  meet  ethical  requirements.  Only 
a  minority  of  wage-earners  are  organized  in  unions. 
Those  who  are  outside  of  unions  have  the  same  fun- 
damental human  rights  as  the  members  of  such  as- 
sociations, without  their  protection. 

Therefore  if  we  start  with  a  standard  of  living 
it  must  include  all  operatives;  and,  logically,  this 
standard  should  be  discovered  by  scientific  investiga- 
.tion  and  enforced  by  the  State  and  not  left  to  the 
caprice  and  struggles  of  voluntary  associations. 

This  conclusion  is  enforced  by  the  consideration 
that  many  times  where  organized  workmen  secure 

254 


Experiments  In  Democracy 

favorable  agreements  with  organized  employers  the 
public  is  victimized  by  being  compelled  to  pay  exor- 
bitant rates  for  buildings,  for  plumbing  and  for  other 
products  of  the  industries  included  in  the  combina- 
tion. This  burden  is  felt  in  the  "high  cost  of  liv- 
ing," and  often  falls  heavily  on  unorganized  labor. 

We  shall  never  even  begin  to  have  an  accurate, 
scientific  and  general  standard  without  analysis  of 
human  needs,  estimates  of  costs  of  commodities,  and 
inspection  of  human  beings  to  see  whether  they  are 
actually  well  fed,  clothed,  housed,  and  educated; 
and  this  survey  must  include  the  unorganized  and  un- 
skilled workers. 

Pioneer  beginnings  have  already  been  made 
toward  the  erection  of  such  standards  and  their  ap- 
plication in  inspection.  Examples  are  found  in  pe- 
riodical medical  examinations  of  workmen  in  shops, 
mills,  factories,  mines  and  on  lines  of  transportation. 
Other  illustrations  are  found  in  municipal  building 
codes  which  fix  and  enforce  standards  of  habitations; 
in  the  inspection  of  lodging  houses;  in  the  medical  in- 
spection of  school  children,  and  in  the  very  system 
of  free  public  schools  from  kindergarten  to  state 
university. 

State  public  standards  of  living,  although  still 
vaguely  defined,  have  a  real  influence  on  employers 
themselves  who  are  gradually  applying  them  in  their 
dealings  with  operatives  under  their  control.  Evi- 
dences of  this  are  found  in  all  the  chapters  of  this 
volume. 

May  not  society  have  some  interest  in  the  dispute? 
255 


Citizens  in  Industry 


If  disorder  arises  from  a  feeling  of  Injustice  and 
oppression;  If  life,  property,  and  order  are  imper- 
iled; if  the  cost  of  destruction,  waste,  and  unem- 
ployment must  at  last  be  shared  by  the  whole  people 
of  the  nation — should  irreconcilable  citizens  be  left 
to  fight  It  out,  or  one  party  be  whipped  or  starved 
Into  submission?  Is  It  true  that  any  group  possessed 
of  power  can  be  trusted  to  use  it  without  criticism 
or  regulation?  Is  It  not  a  humiliating  position  for 
the  President  of  the  United  States  to  be  obliged  to 
beg  the  miners  and  operators  of  Colorado  to  keep 
the  peace?  Is  that  a  dignified  attitude  for  the  fed- 
eral authority  to  be  obliged  to  take? 

Mankind  has  a  vast  and  prolonged  experience 
which  seems  to  some  of  us  to  point  the  way  to  a  so- 
lution. From  the  dawn  of  time  society  has  found  it 
reasonable  and  necessary  to  make  laws  and  set  up 
courts  to  decide  disputes  of  many  kinds  between  in- 
terested private  parties.  In  no  civilized  country 
have  men  been  left  to  settle  their  wrongs  In  their 
own  way.  The  most  honest  man  will  not  ask  another 
man  to  decide  what  is  just  when  there  Is  a  difference 
of  judgment.  Even  the  simple  community  of  early 
Christians  provided  for  arbitrators  to  avoid  going 
to  law  before  pagan  judges.  For  most  disputes  be- 
tween Individuals  the  law  and  the  courts  speak  the 
final  word. 

If  anything  Is  clear  from  history  It  Is  that  no 
class,  no  private  association,  no  group  can  be  trusted 
with  absolute  power;  It  Is  sure  to  be  abused.  The 
French  Revolution,  tragic  and  savage  as  It  was,  de- 

256 


Experiments  in  Democracy 

cided  that  kings,  nobles  and  ecclesiastics  must  be 
brought  under  the  sovereign  control  of  the  nation 
itself.  The  Declaration  of  Independence  and  our 
Constitution  are  classic  declarations  of  the  belief 
that,  in  the  last  analysis,  no  section  of  the  people  can 
arbitrarily  rule  another.  The  abolition  of  slavery 
brought  the  excluded  race  finally  and  forever  under 
the  shield  of  the  national  Constitution.  The  arro- 
gance and  unreason  of  men  accustomed  to  unques- 
tioned obedience  are  proverbial.  This  does  not  im- 
ply that  "men  are  villains  a',"  but  only  that 

When  self  the  wavering  balance  shakes, 
Tis  rarely  right  adjusted. 

It  is  the  State  and  not  the  grocers'  association  which 
Is  trusted  to  test  the  scales  used  In  retail  markets. 

The  attitude  of  the  most  progressive  and  open- 
minded  corporation  managers  is  illustrated  in  an  In- 
terview with  a  celebrated  magnate.  This  gentleman 
declares  that  capitalistic  leaders  have  advanced  be- 
yond their  positions  of  twenty  years  ago,  and  he  said : 
"As  far  as  I  am  concerned  it  is  largely  traceable  to 
Roosevelt.  ...  I  know  him  well.  I  have  consid- 
ered every  suggestion  for  Improving  business  con- 
ditions that  he  has  ever  made.  I  have  tried  to  adopt 
many  of  them.  .  .  .  Whenever  a  newspaper  or  a 
magazine  makes  a  fair  and  honest  suggestion,  I  al- 
ways adopt  It;  but  we  have  made  a  great  many 
changes  without  suggestions  from  the  public  at  all." 
When  one  superintendent  said  his  own  labor  policy 

257 


Citizens  in  Industry 


was  "Hit  the  first  kicker  over  the  head  with  the 
nearest  shovel  and  throw  him  out!"  this  chief  of  a 
trust  replied:  "That  will  never  be  the  policy  of 
this  corporation  while  I  am  its  president.  .  .  .  We 
must  make  it  certain  that  the  men  in  our  employ  are 
treated  as  well  as,  if  not  a  little  better  than,  those 
who  are  working  for  people  who  deal  and  contract 
with  unions."  That  is  the  dead  point!  This  man- 
ager of  fabulous  concentration  of  wealth  and  power 
will  not  tolerate  a  strong  and  effective  organization 
of  employees;  he  will  not  wait  for  public  action  nor 
permit  it  if  he  can  help;  he  will  be  divine  providence 
to  his  subject.  In  the  present  state  of  trade  unions 
and  of  politics  we  must  admit  that  the  practical 
man's  suspicion  of  both  is  largely  justified;  but  it 
would  be  to  despair  of  the  Republic,  to  believe  that 
we  must  remain  subject  to  oligarchies  of  self-selected 
rulers  because  we  are  unable  to  secure  honest  and 
competent  government  ofliclals. 

We  have  already  noted  the  fact  that  there  Is  an- 
tagonism between  the  contemporary  "efliciency" 
movement  and  the  trade  unions;  and  this  conflict 
deserves  further  consideration  In  this  connection.  It 
Is  evident  that  no  devices  of  checks,  stop-watch  es- 
pionage and  cost  records  will  secure  the  highest  de- 
gree of  Industry,  skill  and  attention  so  long  as  the 
rank  and  file  of  the  workmen  believe  that  increased 
production  will  mean  larger  profits  but  smaller  wages 
with  greater  strain.  Increase  of  profits  goes  at  once 
Into  the  legal  ownership  of  the  masters  and  remains 
in  their  control.    The  workmen  know  many  Instances 

258 


Experiments  in  Democracy 

where  harder  and  more  faithful  work  has  increased 
the  product  but  not  their  share  of  It.  There  is  no 
necessary  and  automatic  connection  between  labor 
efforts  and  higher  wages  and  shorter  hours.  The 
workmen  have  reasons  drawn  from  experience  to 
show  that  the  mysterious  "law  of  supply  and  de- 
mand" Is  a  deity  which  has  no  particular  Interest  in 
them;  and  that  to  depend  on  the  generosity  of  the 
employer  Is  not  "business."  Hence  the  Intelligent 
workmen  of  all  modern  countries,  with  an  unanimity 
explained  only  by  universal  experience,  are  looking 
either  to  collective  bargaining  or  to  the  definition  of 
rights  which  can  be  legally  enforced  in  courts. 

The  psychologist,  the  engineer,  and  perhaps  the 
economist  as  such,  have  nothing  directly  to  do  with 
the  ethical  question  of  the  division  of  the  product 
which  is  increased  by  efficiency.  The  technical  spe- 
cialist knows  how  he  ought  to  build  a  bridge  or  how 
to  pierce  a  tunnel,  presupposing  that  the  bridge  or 
tunnel  is  desired.  Whether  these  are  desirable  does 
not  concern  the  technical  scientist.  The  physician 
presupposes  that  the  patient  should  be  made  well, 
and  it  is  his  professional  task  to  adopt  suitable  means 
to  this  accepted  end.  So  the  psychologist  assumes 
that  goods  should  be  manufactured  at  least  cost 
and  says  to  manufacturers,  "If  you  want  this  end, 
then  you  must  proceed  in  this  way."  ^  While  this 
reasoning  is  sound  It  compels  practical  people  as 
well  as  students  of  social  ethics  to  go  down  deeper 

^  See  Hugo  Miinsterberg :  Psychology  and  Industrial  Effi- 
ciency. 

259, 


citizens  In  Industry 


to  examine  the  very  assumptions  of  the  psychotech- 
nical  specialists.  They  assume  that  increased  pro- 
duction by  more  efficient  methods  is  desirable;  but 
this  is  precisely  what  the  average  workingman  either 
denies  or  regards  with  paralyzing  skepticism;  and 
until  his  hesitation  is  removed  the  professors  of  psy- 
chotechnics  are  trying  to  sail  a  ship  without  wind 
or  steam. 

An  absolute  despot  may  be  conscientious  and  re- 
ligious. He  may  sincerely  believe  that  God  has  di- 
rectly made  him  ruler  by  divine  right,  and  that  crit- 
icism of  him  is  treason.  While  the  divine  right  of 
kings  has  been  cast  to  the  rubbish  heap  of  obsolete 
ideas,  that  of  employers  has  been  reasserted  within 
a  few  years. 

The  modern  spirit  of  popular  government,  vaguely 
designated  "democracy,"  has  a  memory.  It  will  have 
no  star  chambers,  no  secret  procedure  of  trials,  no 
lettres  de  cachet,  no  legislatures  representing  a  single 
class. 

What  means  the  Interstate  Commerce  Commis- 
sion but  the  declaration  of  the  sovereignty  of  the 
nation  over  the  powerful  organization  of  railway 
corporations  with  their  own  Interests  to  distort  their 
moral  vision?  What  is  the  significance  of  the  fed- 
eral and  state  inspection  of  banks  and  life-insurance 
companies,  two  vast  systems  of  business  where  a 
narrow  clique  Interest  has  led  millions  Into  waste, 
loss  and  misery?  The  regulation  and  control  of  all 
corporations  by  supreme  authority  through  recent 
legislation  Indicate  the  direction  we  are  traveling,  and 

260 


Experiments  in  Democracy 

history  demonstrates  the  necessity  of  public  protec- 
tion of  public  welfare. 

The  healthy  part  of  the  nation  is  sick  of  the  hor- 
rors of  the  inhuman  strife  in  coal  mines,  the  sabo- 
tage of  murderous  unions,  the  neglect  of  life-saving 
legislation  by  operators,  "A  plague  on  both  your 
houses!"  The  next  step  will  be  the  development, 
slowly  and  cautiously,  of  a  tribunal  to  decide  dis- 
putes between  employers  and  workmen:  a  tribunal 
representing  a  nation  and  not  a  clique  or  a  class;  a 
tribunal  which  will  lay  bare  the  whole  case.  In  all  its 
aspects;  a  tribunal  before  which  may  appear  the 
humblest  laborer,  discharged  unjustly  by  a  brutal 
foreman,  and  have  his  case  heard  with  impartiality 
and  without  cost;  and  by  means  of  which  urban  com- 
munities may  be  saved  from  submission  to  striking 
employees  of  gas  works,  water  works,  street  rail- 
ways and  electric-light  plants. 

Knowing  the  history  of  human  weakness,  and  of 
frailty  of  judgment  when  selfish  interests  are  at 
stake,  honest  men  ought  not  to  desire  arbitrary 
power,  and  they  ought  actively  to  seek  to  be  relieved 
of  a  responsibility  which  they  cannot  discharge  and 
which  makes  them  perpetual  objects  of  suspicion  and 
hatred. 

The  Erdmann  Act,  the  Newlands  Act,  and  re- 
lated legislation  are  but  the  crude  and  experimental 
form  of  an  institution  which  is  capable  of  being  per- 
fected by  the  cooperative  efforts  of  all  who  value 
peace  with  justice,  order  with  humanity,  and  fair 
deahng  with  fraternity,   above  all  absolute  power 

261 


Citizens  in  Industry 


over  the  lives  and  fortunes  of  competitors  and  an- 
tagonists. 

The  Newlands  Act  (July  15,  19 13),  which  suc- 
ceeded the  Erdmann  Act,  provides  for  the  repre- 
sentation of  corporations  and  their  employees  In  a 
national  Board  of  Mediation  and  Conciliation.  This 
board  is  independent  of  other  governmental  depart- 
ments and  is  responsible  directly  to  the  President  of 
the  United  States.  It  has  legal  authority  to  tender 
its  good  offices,  whether  asked  to  do  so  or  not  by 
one  or  the  other  party  to  a  controversy.  The  arbi- 
tration board  consists  of  six  members  unless,  in  a 
specific  case,  the  parties  concerned  agree  upon  them. 
The  limits  of  time  within  which  a  decision  must  be 
reached  are  fixed,  and  the  exact  question  to  be  arbi- 
trated must  be  defined  in  advance.  Witnesses  are 
heard  under  oath  and  the  board  has  large  powers 
for  securing  the  Information  it  may  need. 

Attitude  of  the  American  Federation  of  Labor  To- 
ward Arbitration. — Mr.  Gompers  says:  "There  are 
even  some  workmen  who  with  us  seek  to  avoid  the 
stress  and  strain  of  a  strike,  who  are  loud  to  advo- 
cate statutory  compulsory  investigation,  state  media- 
tion, and  arbitration,  and  the  pronunclamento  of  an 
award,  with  a  supposed  voluntary  acceptance  of  such 
an  award.  They  do  not  know  that  wherever  these 
systems  have  been  introduced  they  have  led  either 
to  compulsory  arbitration  with  compulsory  award, 
compulsory  obedience  to  the  terms  of  the  award,  or 
else  have  resulted  in  a  reaction  demanding  the  repeal 
of  the  so-called  state  compulsory  investigation  and 

262 


Experiments  in  Democracy 

voluntary  state  mediation  and  award.  .  .  .  The 
American  labor  movement  aims  to  avoid  the  stress 
and  strain  of  strikes,  but  we  are  not  led  by  glittering 
generalities  or  vain  hopes.  .  .  .  The  toilers,  real- 
izing that  their  constant  material  improvement  is 
necessary  for  the  welfare  and  progress  of  the  hu- 
man race,  will  protest  or  strike,  law  or  no  law,  in  the 
effort  to  accomplish  their  justifiable  purpose.  Any 
attempt  by  law  to  curb  the  right  of  the  workers  to 
sever  their  relations  with  their  employers,  to  strike, 
will  be  resented,  as  it  should  be  resented.  .  .  .  We 
want  peace  in  industry,  but  we  want  peace  with 
honor,  progress  and  freedom.  So-called  peace,  pur- 
chased at  the  price  which  would  shackle  the  minds 
and  the  actions  of  the  workers,  is  no  real  peace  at 
all;  it  is  the  beginning  of  slavery."^  Surely  this 
declaration  cannot  be  the  final  word,  however  much 
provocation  there  may  be  to  utter  it.  Law  is  not 
yet  the  exact  and  complete  expression  of  the  common 
welfare,  but  It  ought  to  be  and  can  be  made  a  far 
more  perfect  agency  of  the  universal  good  than  the 
decisions  of  some  limited  voluntary  organization. 
The  trade  unions  have  never  yet,  in  any  responsible 
way,  announced  their  purpose  to  be  anarchistic  and 
disloyal.  Any  scheme  of  arbitration  which  leaves 
the  wage-earners  without  defense  must  of  course  fall 
to  the  ground;  and  any  law  which  interferes  with 
the  mobility  of  labor,  the  freedom  of  contract  or 
the  right  of  collective  bargaining  and  striking  can- 
^  Proceedings   of   American    Federation    of   Labor,   Dec, 

263 


Citizens  in  Industry 


not  endure  criticism.  We  must,  therefore,  confi- 
dently hope  that  reason  and  a  profound  respect  for 
the  common  welfare  will  bring  employers  and  unions 
upon  a  common  platform  of  justice  and  fair  deal- 
ing; and  the  most  enlightened  representatives  of 
both  parties  can  promote  all  measures  which  help  to 
formulate  justice  defined  as  the  requirement  of  na- 
tional well-being.  In  no  country  has  private  volun- 
tary organization  alone  ever  been  able  to  protect  chil- 
dren, women  and  the  unskilled  against  exploitation, 
to  establish  a  universal  and  equitable  system  of  acci- 
dent, sickness,  invalid  and  old-age  insurance,  to  pro- 
vide a  system  of  occupational  hygiene,  to  maintain 
standards  of  control  over  public  utility  corporations 
for  the  protection  of  stockholders,  wage-earners  and 
all  consumers.  Collective  bargaining  has  a  wide 
and  honorable  field,  a  necessary  social  function,  but 
It  ought  never  to  be  regarded  as  a  substitute  for  good 
government. 

Nothing  more  radical  In  principle  has  been  pre- 
sented In  this  discussion  than  the  statement  of  Mr. 
John  D.  Rockefeller,  Jr.,  before  the  United  States 
Commission  on  Industrial  Relations,  January  25, 
19 1 5.  It  is  revolutionary  In  tendency  as  It  Is  frank 
and  courageous  In  spirit: 

"In  conclusion,  Mr.  Chairman,"  said  Mr.  Rocke- 
feller, "quite  apart  from  any  particular  situation 
may  I  express  in  utter  frankness  the  view  which  as 
an  Individual  and  a  citizen  I  hold  toward  the  prob- 
lems into  which  your  commission  has  been  appointed 
to  Inquire? 

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Experiments  in  Democracy 

"I  believe  that  the  ultimate  object  of  all  activities 
in  a  republic  should  be  the  development  of  the  man- 
hood of  its  citizens;  that  such  manhood  can  be  devel- 
oped to  the  fullest  degree  only  under  conditions  of 
freedom  for  the  individual  and  that  industrial  enter- 
prises can  and  should  be  conducted  in  accordance 
with  these  principles.  I  believe  that  a  corporation 
should  be  deemed  to  consist  of  its  stockholders,  di- 
rectors, officers  and  employees;  that  the  real  interests 
of  all  are  one,  and  that  neither  labor  nor  capital  can 
permanently  prosper  unless  the  just  rights  of  both  are 
conserved.  If,  with  the  responsibilities  I  have  and 
the  opportunities  given  me  I  am  able  to  contribute 
toward  promoting  the  well-being  of  my  fellow-men, 
through  the  lessening  of  injustice  and  the  alleviation 
of  human  sufferings,  I  shall  feel  that  it  has  been  pos- 
sible to  realize  the  highest  purpose  of  my  life." 

The  world  moves  and  moves  upward.  The  impli- 
cations of  free  and  representative  government  have 
been  discovered  and  restated  in  economic  adminis- 
tration. When  rulers  of  society  take  democracy  into 
their  confidence  they  do  not  abdicate  a  throne;  rather 
they  ascend  to  the  dignity,  security  and  honor  of  men 
of  faith  in  humanity  and  in  the  divine  order  of  the 
world. 


CHAPTER    VIII 

ADMINISTRATION  OF  WELFARE  WORK  AND  THE 
SOCIAL  SECRETARY 

With  the  hicreasing  magnitude  and  complexity 
of  modern  industry  and  business  it  is  necessary 
to  assign  special  tasks  to  trained  persons  who 
have  definite  duties.  The  capitalist  manager 
whose  interests  have  become  widely  extended 
and  too  varied  for  his  personal  attention,  finds 
It  Imperative  to  employ  someone  to  carry  out 
his  Ideas  In  relation  to  his  welfare  work  of  all 
kinds.  It  is  this  situation  which  has  created  the  of- 
fice and  profession  of  "social  secretary."  The  re- 
quests for  assistance  are  so  numerous  as  to  require 
not  only  constant  clerical  help,  but  the  consideration 
of  an  educated  representative  capable  of  using  dis- 
crimination and  judgment.^ 

I.  Functions  of  Social  Secretaries. — In  a  general 
survey  we  may  deal  with  four  fields  of  activity,  the 
duties  of  which  may  be  so  different  and  complex  as 
to  require  in  each  of  them  a  special  agent  or  agents 
with  qualifications  and  education  for  the  particular 

1  W.  H.  Allen :  Modern  Philanthropy — which  is  full  of 
illustrations  of  the  bewildering  calls  upon  the  sympathy  of 
a  person  of  wealth  who  is  known  to  give  liberally. 

266 


Welfare  Work 


tasks:  (i)  the  shop,  (2)  the  office,  (3)  the  out- 
side life  of  employees,  (4)  the  general  charities  of 
the  employer.  In  smaller  establishments  one  person 
may  be  able  to  meet  demands  In  all  these  depart- 
ments, but  in  the  great  mills  and  factories  several 
persons  may  be  necessary,  each  with  special  qualifica- 
tions and  training. 

The  questions  of  coordination  of  welfare  agents, 
of  the  division  of  labor  between  them,  of  testing 
their  activities  by  results,  of  their  responsibility  to 
the  authorities  of  the  corporation,  are  important  and 
must  be  decided  by  the  managers  according  to  the 
needs  of  each  particular  establishment. 

In  general,  the  "welfare  secretaries"  have  influ- 
ence rather  than  authority,  and  Influence  is  more  vital 
than  power. 

2..  The  Social  Secretary  in  Relation  with  the 
Principal. — This  relation  Is  delicate  on  both  sides. 
Even  persons  who  have  known  each  other  for  years 
and  have  rubbed  elbows  in  congenial  civic  and  philan- 
thropic work,  on  occasions,  find  obstacles  in  the  way 
of  psychical  adjustment  to  the  closer,  continuous 
association.  The  trend  naturally  is  toward  con- 
fidence and  intimacy.  Such  conditions  are  impos- 
sible for  prescription  or  delimitation  In  a  contract 
or  even  in  a  verbal  agreement.  The  elusive  factors 
of  congeniality,  temperament,  and  tact  are  discov- 
erable only  by  association,  particularly  In  the  stress 
of  business. 

The  principal,  when  the  Increasing  volume  of  his 
civic,   philanthropic    and   welfare   work   requires   a 

267 


Citizens  in  Industry 


division  of  labor  to  perform  It  with  reasonable  dis- 
patch, may  find  difficult  the  surrender  to  another  of 
a  part  of  the  field  where  he  has  been  dominant  down 
to  the  details.  He  may  have  a  wholly  natural  dis- 
trust of  the  judgment  and  decision  of  another  per- 
son, a  salaried  employee,  in  matters  where  one 
likes  to  act  on  his  own  opinion  and  where  his 
money  is  at  stake.  There  is  an  old  saying  that  It 
is  easy  to  spend  someone  else's  money.  Men  of 
large  means  know,  from  observation,  that  this  is 
true. 

The  social  secretary  who  has  the  initiative  and 
feels  himself  competent  to  take  the  bit  In  his  teeth 
and  manage  his  principal's  social  business  is  apt  to 
chafe  under  the  restraint  of  the  new  relation,  at 
least  in  Its  Initial,  or  probationary,  stages.  But  he 
must  remember  that  spurs  are  not  won  In  a  day; 
and  that  honest,  capable  work  Is  sure  to  be  rewarded 
by  greater  trust  and  authority  and  larger  return  in 
money. 

Of  course.  In  the  analysis  of  this  relation,  It  be- 
comes apparent  that  there  can  be  only  one  deciding 
mind  as  the  various  issues  arise — the  mind  of  the 
principal.  This  Is  as  it  should  be.  However,  in 
modern  business  life,  with  its  many  specialized  de- 
partments, the  executive  has  learned  the  value  of 
counsel.  In  this  capacity  the  social  secretary,  hav- 
ing the  confidence  of  his  principal,  finds  an  attractive 
field  of  activity  aside  from  the  zest  of  Investigation, 
analysis  and  decision.  He  can  influence  the  finding 
and  the  action  of  his  employer  to  such  degree  as  his 

268 


Welfare  Work 


Information  is  precise  and  his  judgment  and  recom- 
mendations are  sound  and  timely. 

The  variety  of  subjects  encountered  by  the  so- 
cial secretary,  especially  one  who  aids  the  principal  In 
his  personal  work,  Is  so  great  and  the  details  In  each 
are  so  complex  and  confusing  that  few,  if  any,  men 
can  be  found  who  encompass  within  their  own  capac- 
ity a  masterful  knowledge  of  all.  The  experienced 
principal  does  not  expect  this.  But  one  who  attempts 
the  work,  to  be  successful  with  his  superior,  must 
have  a  ready  wit  for  knowing  where  to  lay  his  hands 
upon  the  Information  he  lacks.  For  this  reason 
newspaper  men,  trained  In  resourcefulness  In  "get- 
ting things"  that  are  elusive,  often  make  efficient 
social  secretaries,  especially  in  the  field  of  the  per- 
sonal philanthropies  of  a  man  of  large  means.  Fur- 
thermore, newspaper  men,  who  have  gathered  Items 
about  pretty  much  the  whole  realm  of  human  expe- 
rience and  told  them  In  glib  detail  to  the  public,  are 
particularly  adept  In  knowing  what  matters  are  best 
handled  in  silence.  Silence  regarding  personal  af- 
fairs Is  a  necessity  for  a  successful  relation  between 
a  social  secretary  and  his  chief. 

3.  The  Personal  Relation  Mediated  Between 
E?npIoyer  and  Employee  by  the  Social  Secretary. — 
In  former  times  the  master  mechanic  was  person- 
ally acquainted  with  his  hired  men;  he  worked  with 
them  and  conversed  with  them;  disputes  could  be 
argued  out,  and  the  materials  for  a  judgment  were 
all  at  hand.  But  the  great  industry  has  alienated 
the  owners  from  the  operatives.     The  stockholders 

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Citizens  in  Industry 


and  bondholders  of  a  railway  or  steel  mill  are  scat- 
tered over  the  globe.  Even  the  directors  and  man- 
agers live  in  a  different  social  world  afar  from  the 
workmen.  They  do  not  understand  each  other;  the 
conflict  between  profit  and  wages  is  perpetual;  each 
party  is  watchful  to  protect  its  own  interest.  The 
Immediate  superintendents  and  foremen  are  only 
too  frequently  petty  tyrants,  fond  of  exercising  their 
authority  and  eager  to  show  returns  to  the  officials 
above  them.  Griefs  fester  In  hidden  places,  and  the 
heart  grows  revengeful  over  a  million  annoyances, 
each  one  no  more  in  itself  than  the  sting  of  a  gnat. 
The  "welfare  agent"  has  here  an  opportunity,  on 
condition  that  he  has  the  full  confidence  of  all  con- 
cerned. He  may  go  about  observing  the  points  at 
which  pain  enters,  where  resentment  Is  aroused, 
where  personal  honor  is  touched,  where  needless 
strain  Is  Imposed,  where  harshness  in  word  or  ges- 
ture Is  manifest  but  cannot  be  met  with  revolt.  He 
may  brood  over  methods  of  removing  the  cause  of 
irritation  and  discuss  this  with  the  representatives  of 
administration  until  a  remedy  Is  found.  The  moral 
bond  is  restored;  the  severed  nerve  of  communica- 
tion Is  joined  and  healed;  there  Is  a  better  under- 
standing, and  the  spirit  of  concord  Is  once  more 
felt. 

'  It  Is  often  asserted  that  there  is  no  philanthropy 
in  welfare  work.  As  one  writer  affirms  of  the 
"welfare  secretary":  "Yet  not  In  any  sense  is  he 
an  instrument  of  philanthropy.  His  duty  is  to  nour- 
ish contentment  simply  because  contentment  means 

270 


Welfare  Work 


efficiency,  and  efficiency  spells  bigger  dividends  for 
the  powers  that  be."  Many  similar  statements  could 
be  quoted.  They  rest  on  error.  Since  what  era 
has  it  become  reasonable  to  be  ashamed  of  kindness 
to  human  beings?  Who  has  dissected  the  motives 
of  employers  and  found  nothing  but  a  leather  pocket 
for  profits  where  a  heart  ought  to  be?  Who  has 
proved  that  wage-earners  are  incapable  of  friendship 
with  employers?  Admitting  that  a  business  must  be 
made  profitable  in  order  that  it  may  continue,  who 
has  a  right  to  affirm  that  profit-making  adequately 
explains  business  conduct?  The  "economic  man"  is 
an  impossible  abstraction,  and  never  did  exist.^  It 
is  a  poor  psychology  which  evokes  the  ghost  of  a  man 
who  cares  for  nothing  but  gain. 

This  cant  is  not  only  false  but  dangerous  and  de- 
basing. It  cannot  remain  popular  without  doing 
mischief.  To  boast  of  carrying  on  business  without 
regard  for  the  human  operatives  is  shameless  cyni- 
cism, and  ought  to  exclude  the  boaster  from  decent 
society.  Philanthropy  is  our  common  heritage  from 
the  moral  achievements  of  our  spiritual  ancestors  and 
it  enters  into  all  activities.  Selfish  disregard  of 
others  does  exist,  but  it  should  be  hidden  in  shame 
and  confessed  with  penitence  only  in  the  ear  of  Him 
who  forgives  the  penitent;  it  is  not  to  be  flaunted  as 
a  virtue.  Dickens  described  Mr.  Gradgrind,  but 
only  as  an  extreme  caricature  of  a  detestable  type. 
Have  we  come  to  a  time  when  Mr.  Gradgrind  is  to 

^  E.  T-  Devine:    paper,  National  Conference  of  Charities 
and  Correction  (Memphis,  1914),  p.  75. 

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Citizens  in  Industry 


be  idolized?     Then  national  ruin  is  not  far  away 
and  business  is  a  monster. 

If  Business  is  battle,  name  it  so; 
War  crimes  less  will  shame  it  so; 
And  widows  less  will  blame  it  so. 

Lanier — The  Symphony. 

The  welfare  secretary  Is  a  personal  witness  that 
men  of  business  are  first  of  all  men.  A  highly  edu- 
cated and  public-spirited  employer  voiced  the  domi- 
nant purpose  of  the  better  class  of  the  group:  "I 
believe  the  officers  are  trustees  of  the  Interests  of  all 
connected  with  the  Institution."  On  this  saying 
labor  papers  have  generously  remarked  that  a  "new 
era  In  the  relationship  between  capital  and  labor  Is 
at  hand,  an  era  In  which  the  human  factor  In  Indus- 
try will  be  taken  more  and  more  Into  consideration." 

The  fundamental  social  function  of  business  Is  not 
personal  profit  but  service  to  the  people;  when  that 
purpose  ceases  to  control  we  have  brigandage  but 
not  legitimate  business. 

4.  Natural  Oualifu-at'ions  of  a  JVelfare  or  So- 
cial Secretary. — Manifestly  the  representative  of 
the  firm  must  have  sufficient  physical  health  and  en- 
ergy to  stand  up  under  the  work  required  in  the  par- 
ticular position,  which  may  be  more  or  less  exacting 
and  trying.  Vigor  and  good-feeling  are  very  gener- 
ally dependent  upon  good  digestion ;  one  who  is  too 
conscious  of  having  nerves  may  become  Irritable  and 
communicate  bad  temper. 

The  secretary  of  human  relations  must,  as  a  mat- 
272 


Welfare  Work 


ter  of  course,  have  tact  and  common  sense.  It  may 
be  difficult  to  find  in  the  dictionaries  and  psychologies 
a  very  exact  definition  of  tact,  but  any  capable  man- 
ager will  soon  discover  its  absence.  The  moral  blun- 
derbuss plays  havoc  in  a  position  where  conciliation 
is  of  the  essence  of  the  function. 

5.  The  Educational  Preparation  of  a  Social  Sec- 
retary for  an  Industrial  Establishment. — If  the  re- 
quirements are  limited  to  a  few  simple  activities  of 
a  routine  nature,  a  bright  high-school  girl,  with  some 
experience  in  life,  may  give  satisfaction.  We  have 
in  mind  in  this  discussion  an  altogether  different  po- 
sition, one  of  responsibility,  with  scope  for  inven- 
tion and  initiative. 

The  following  paragraphs  indicate  the  actual 
paths  by  which  the  work  of  social  secretary  for 
women  employees  has  been  approached  and  en- 
tered: 

Mrs.  W.  taught  for  a  number  of  years  in  a  busi- 
ness college;  was  employed  by  a  mercantile  house 
which  gave  her  some  insight  into  welfare  work; 
worked  six  months  in  the  adjusting  department  of  an- 
other retail  house  in  order  to  become  acquainted  with 
the  system  of  the  store.  This  lady  considers  teach- 
ing excellent  preparation  for  welfare  work,  but  the 
teacher  must  not  be  of  the  narrow  type. 

Mrs.  V.  was  a  graduate  of  a  state  university; 
taught  seven  years;  has  done  newspaper  work;  has 
had  much  social  experience.  She  says  that  persons 
who  undertake  to  do  welfare  work  must  know 
people.    She  has  had  no  selling  experience,  but  knows 


Citizens  in  Industry 


merchandise.     She  is  the  wife  of  a  railway  purchas- 
ing agent. 

Miss  R.  had  a  general  college  course;  one  year  in 
Y.  W.  C.  A.  Training  School,  New  York  City;  has 
had  much  experience  with  girls'  clubs.  She  con- 
siders a  general  college  course  better  than  a  spe- 
cialized one  as  it  makes  one  more  resourceful;  does 
not  consider  knowledge  of  factory  processes  help- 
ful ;  has  no  manual  dexterity,  but  thinks  all  the  proc- 
esses could  be  learned  in  a  few  months. 

Mrs.  K.  had  a  general  education  but  is  not  a  col- 
lege graduate;  took  one  year's  work  at  Chicago 
School  of  Civics  and  Philanthropy;  kept  house  for 
twenty  years,  which  she  considers  helpful  experience; 
was  active  in  club  work  and  interested  in  civic  ques- 
tions; is  a  widow,  mother  of  three  boys. 

Miss  Z.  is  a  trained  nurse,  with  two  years'  hospital 
experience  and  two  years  in  private  homes;  was  em- 
ployed by  the  Tuberculosis  Institute  for  one  year 
and  a  half;  has  had  some  training  in  a  normal 
school;  taken  a  course  of  lectures  at  the  School  of 
Civics  and  Philanthropy;  and  taught  in  primary 
grades  for  three  years. 

Miss  M.  is  a  college  graduate;  specialized  in  eco- 
nomics and  sociology;  from  1908-1909  acted  as  spe- 
cial agent  of  the  U.  S.  Bureau  of  Labor,  investigat- 
ing living  and  working  conditions  of  women  adrift; 
in  1 9 10  was  visitor  and  assistant  superintendent  in  an 
urban  C.  O.  S.  organization;  from  1911-1913  was 
director  of  charities  in  a  small  city.  She  recommends 
the  following  preparation:  general  college  course,  in- 

274 


Welfare  Work 


eluding  studies  of  sociology,  general  and  Industrial; 
courses  In  hygiene  and  sanitation;  commercial  geog- 
raphy; a  course  In  trade  unions,  Avith  supervised  vis- 
its to  Industrial  establishments;  and  actual  experience 
as  worker  in  Industrial  establishments  in  order  to 
know  just  what  are  the  conditions  against  which 
working  girls  must  contend,  especially  where  they 
work  under  a  foreman.  Three  months  of  such  work 
Is  sufficient,  but  in  a  number  of  establishments,  so 
as  to  have  a  variety  of  experience. 

Miss  D.  taught  a  number  of  years,  rural,  grade, 
and  high  school ;  paid  her  way  through  normal  school 
and  nearly  through  a  state  university;  had  nearly 
completed  enough  for  a  degree  when  she  was  offered 
her  present  position  with  a  great  house.  She  had  a 
course  in  sociology  at  the  normal  school  and  one  in 
the  state  university,  but  had  no  work  in  economics. 
She  acted  as  adviser  to  students  In  a  city  high  school; 
did  some  work  in  placing  people  in  teaching  posi- 
tions; assisted  with  charities  In  a  city  one  sum- 
mer, sending  children  to  the  country  for  fresh  air; 
has  done  much  Y.  W.  C.  A.  work;  thinks  a  course 
In  a  school  of  civics  and  philanthropy  would  be  help- 
ful. She  did  not  prepare  specifically  for  welfare 
work. 

Mrs.  W.  had  no  specific  preparation  for  welfare 
work,  but  was  familiar  with  parish  work.  She  be- 
gan by  publishing  the  paper  of  the  company  and 
gradually  took  up  welfare  work.  She  says  visiting 
nurses  are  selected  because  of  ability  to  get  into 
touch  with  people. 

275 


Citizens  in  Industry 


Many  concerns  emphasize  the  health  movement  In 
their  welfare  work;  and  for  this  reason  prefer  wom- 
en with  training  in  nursing  or  medicine.  In  fact,  this 
department  frequently  is  not  called  the  welfare  de- 
partment, but  the  health  department.  A  few  months 
ago  the  Western  Electric  Company  decided  to  es- 
tablish a  welfare  department  but  put  a  welfare  nurse 
in  charge.  There  seems  to  be  considerable  diver- 
gence of  opinion  as  to  whether  actual  experience  in 
the  Industry  where  the  welfare  work  Is  to  be  done  Is 
necessary.  One  line  of  experience  stands  out  con- 
spicuously in  many  cases,  and  that  Is  teaching.  It 
is  highly  probable  that  at  the  time  when  many  of 
these  women  were  beginning  their  life  work,  teaching 
was  the  only  remunerative  work  open.  This  Is  par- 
ticularly true  If  they  were  not  living  In  large  cities. 
All  welfare  workers  agree  that  experience  In  get- 
ting into  touch  with  people  is  absolutely  necessary 
and  teaching  offers  an  avenue  for  securing  such  ex- 
perience. 

In  addition  to  good  health,  good  sense,  good 
taste,  good  manners,  good  character,  a  secretary  of 
the  higher  order  should  begin  with  at  least  the  knowl- 
edge and  mental  training  indicated  by  a  bachelor's 
degree  of  a  recognized  college.  The  course  of  study 
should  be  carefully  planned  for  the  four  years,  and 
should  include  at  least  a  study  of  English  language, 
literature  and  history;  history  of  modern  Europe; 
chemistry,  physics,  biology,  personal  and  public  hy- 
giene, history  of  industrial  development  and  Its  con- 
sequences; elementary  psychology,   economics,  poll- 

276 


Welfare  Work 


tics  and  sociology,  with  a  sketch  of  social  politics 
(factory  legislation,  social  insurance,  etc.).  A  mas- 
tery of  at  least  German  and  French  should  be  added, 
since  in  our  cosmopolitan  population  a  secretary  is  at 
an  advantage  who  knows  how  to  acquire  a  modern 
language.  Italian  may  take  the  place  of  French; 
in  some  localities  in  the  South,  Spanish  is  desirable. 
Some  graduate  schools  of  universities  now  are  pre- 
pared to  offer  advanced  and  special  courses  in  the 
natural  and  social  sciences;  and  social  secretaries  find 
it  to  their  interest,  even  after  some  experience,  to 
return  to  the  university  for  special  kinds  of  informa- 
tion which  they  need.  The  most  speedy  and  econom- 
ical method  of  acquiring  knowledge  is  the  systematic 
study,  under  competent  teachers,  of  the  fundamental 
sciences.  The  self-taught  generally  betray  defects 
In  accuracy,  thoroughness  and  vision,  and  they  do 
not  know  when  and  how  to  rapidly  acquire  informa- 
tion and  weigh  the  value  of  authorities  and  sources. 

In  close  connection  with  this  academic  Instruction 
in  science,  the  candidate  for  social  work,  during 
the  time  of  study,  should  be  able  to  explore  Industrial 
and  commercial  establishments  where  large  numbers 
of  employees  are  gathered,  and  thus  be  able  to  see 
the  actual  conditions  under  which  human  beings  live 
and  labor. 

But  this  exploration  is  not  enough;  there  must  be 
apprenticeship  under  the  direction  and  guidance  of 
secretaries  who  have  already  gained  success.  It  is 
not  difficult  during  vacations  to  enter  Into  such  a  re- 
lation with  the  consent  of  the  firm,  if  the  apprentice 

277 


Citizens  in  Industry 


is  well  recommended  and  is  willing  to  assist  in  the 
humblest  details  of  the  office.  Such  relations  should 
be  arranged  by  the  college  or  university  which  be- 
comes responsible  for  the  recommendation,  and 
which  assures  itself  that  the  apprentice  service  shall 
not  be  exploitation  but  have  educational  value.  For 
this  purpose  the  institution  of  education  must  em- 
ploy a  director  of  exploration  and  of  apprentice 
training,  one  who  is  able  to  guarantee  sound  methods 
on  both  sides,  for  both  the  employers  and  the  appren- 
tices must  be  protected.  No  student  should  be  sent 
to  an  office  until  there  is  assurance  of  serious  pur- 
pose, adequate  preparation,  and  probable  fitness  for 
the  particular  position.  Employers  will  soon  de- 
cline to  accept  apprentices  from  an  institution  which 
fails  at  this  point,  and  whose  selections  are  found  to 
be  unreliable. 

Health  Conditions:  Direction. — All  that  relates  to 
safety  must  be  planned  by  experts  and  carried  out 
by  persons  competent  to  form  judgments,  as  com- 
mittees of  foremen  and  workmen.  These  devices 
have  already  been  discussed.  The  relation  of  the 
social  secretary  to  such  matters  will  depend  upon 
personal  fitness  and  the  needs  of  the  situation.  The 
specific  arrangements  for  avoiding  accidental  inju- 
ries from  machinery  and  process  must  be  determined 
by  qualified  mechanical  engineers;  and  thousands  of 
such  devices  are  already  familiar  in  museums  and 
in  the  literature  of  the  subject.  The  secretary  may 
be  useful  in  inducing  the  employers  to  provide  proper 
devices  and  in  inducing  the  workers  to  use  them. 

278 


Welfare  Work 


In  the  shops  which  have  been  "Taylorized,"  the  best 
modern  devices  for  economy  of  human  energy  are 
carefully  installed  as  essential  factors  in  the  scheme 
of  efficiency.     Only  specialists  can  do  this. 

The  medical  problems  of  protecting  health  against 
poisons,  defective  ventilation,  and  other  hurtful 
conditions  must  be  solved  by  expert  physicians  who 
have  given  study  to  these  affairs.  After  the  system 
has  been  established  by  authority  of  the  employers, 
an  intelligent  and  tactful  secretary  will  often  be  help- 
ful in  securing  sympathetic  cooperation  of  the  people 
in  the  shop.  But  constant  and  vigilant  control  by 
medical  men  must  be  an  essential  part  of  the  system. 
No  welfare  secretary  who  has  not  medical  education 
can  go  very  far  in  this  field. 

When  a  great  firm  is  about  to  introduce  a  sickness 
and  accident  benefit  fund  It  should  have  the  counsel 
and  direction  of  an  actuary.  The  establishment 
and  administration  of  an  insurance  fund  to  provide 
for  prolonged  invalidism,  old-age  pensions  and  ben- 
efits for  survivors  of  employees  require  still  higher 
legal  and  actuarial  talent,  because  none  but  special- 
ists can  decide  what  are  the  conditions  of  a  solvent 
fund.  Neglect  of  this  precaution  has  already  ship- 
wrecked many  schemes  which  raised  great  hopes  only 
to  create  bitter  reproaches  and  disappointment  when 
the  Inevitable  crash  came. 

It  is  evident  that  there  can  be  no  such  profession 
as  that  of  a  "social  engineer"  or  "welfare  secretary" 
In  any  general  sense.  The  employers  must  deter- 
mine for  themselves,  upon  the  best  available  advice, 

279 


Citizens  in  Industry 


what  they  wish  to  do,  and  then  they  must  employ 
some  one  quahfied  person  or  several  persons  to  at- 
tend to  the  details.  There  is  no  one  "science"  or 
"art"  which  can  be  mastered  in  preparation  for  all 
kinds  of  welfare  work.  Quackery  has  already 
brought  the  whole  matter  under  suspicion;  and  con- 
fidence can  be  maintained  only  by  competent  leader- 
ship. People  who  are  thoroughly  educated  will  not 
undertake  tasks  for  which  they  are  not  trained. 

Women  Secretaries. — Common  sense  demands 
that  the  welfare  secretary  in  departments  where 
many  women  and  girls  are  employed  should  be  a 
woman.  Such  employees  will  suffer  incredibly  from 
hardships  and  annoyances  before  they  will  carry  their 
grievances  to  members  of  the  administration.  In- 
vestigations in  mercantile  houses  have  occasionally 
revealed  abuses  and  moral  perils  which  shock  the 
community  when  published.  An  intelligent  woman, 
especially  a  widow  who  has  brought  up  daughters, 
is  an  angel  of  light  where  troops  of  inexperienced 
girls  are  brought  together  in  a  telephone  office,  tex- 
tile mill,  or  mercantile  establishment.  There  are  the 
rest-rooms  which  at  particular  times  are  so  necessary 
and  yet  are  so  liable  to  misuse  if  they  are  not  care- 
fully supervised.  A  skillful  housekeeper  is  required 
to  keep  the  kitchen  and  lunch-room  under  her  eye. 
The  magazines,  newspapers,  books  and  pictures 
which  are  provided  for  leisure  moments  may  be  any- 
thing but  a  blessing  if  they  are  not  selected  by  a  high- 
minded  and  educated  woman. 

Then  there  are  the  matters  relating  to  dress  and 
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Welfare  Work 


good  taste  in  manners  which  are  at  once  so  difficult 
to  handle  and  so  vital  to  the  usefulness,  character 
and  happiness  of  the  girls.  It  is  in  such  situations 
as  these,  of  infinite  complexity  and  delicacy,  that  we 
see  how  the  personal  and  human  factor  must  come 
in  to  supplement  the  relatively  rough  and  clumsy 
provisions  of  law  and  of  male  management.  Stand- 
ard devices  for  avoiding  accidents  and  occupational 
diseases  may  be  introduced  over  the  commonwealth 
by  statute;  compensation,  insurance  and  pensions 
may  be  made  obligatory  by  law;  a  minimum  wage, 
a  maximum  day  of  labor  may  be  required  by  public 
authority;  but  the  personal  influence  of  a  cultivated 
lady  in  a  shop  full  of  wild  girls,  eager  for  pleasure 
and  unmindful  of  the  danger,  cannot  be  secured  by 
the  legislature.  The  field  of  philanthropy  may  seem 
to  be  narrow,  but  it  is  precious.  No  device  of  au- 
thority can  make  a  wooden  conscience  do  the  work 
of  spiritual  ideals.  But  just  because  this  voluntary 
method  is  so  delicate  is  the  element  of  personality 
so  vital. 

A  woman  who  attempts  to  give  lessons  in  personal 
hygiene  to  girls  must  be  thoroughly  prepared  for  her 
task,  so  full  of  pitfalls.  It  is  doubtful  whether  it 
is  wise,  even  for  a  well-educated  woman,  to  attempt 
to  give  instruction  on  this  subject  unless  she  is  a  phy- 
sician or  trained  nurse.  A  welfare  secretary  should 
at  least  have  her  instructions  written  out  and  sub- 
mitted for  criticism  to  a  physician  before  she  asks 
her  pupils  to  accept  them  as  laws  of  life. 

An  illustration  of  devices  may  be  drawn  from  life. 
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Citizens  in  Industry 


In  one  week,  a  social  secretary  collected  small  sums 
from  the  women  to  be  deposited  in  the  savings  bank; 
prevented  a  young  woman  from  leaving  the  factory 
by  explaining  to  her  the  meaning  of  a  medical  order 
which  lost  Its  offensiveness  when  clearly  interpreted 
to  her;  gave  lessons  in  hygiene;  settled  a  quarrel  be- 
tween two  of  the  employees;  advised  a  sick  girl  to 
use  milk  instead  of  meat  and  persuaded  another  to 
give  up  her  tight  corset;  gave  a  list  of  books  to  some 
who  Inquired  about  reading;  taught  a  class  In  sew- 
ing; helped  to  secure  railway  tickets  for  a  girl  so 
that  she  could  go  home  each  night;  aided  several 
employees  to  go  to  a  hospital  or  to  a  convalescent 
home. 

"In  a  distinctly  fashionable  shop  In  Boston  the 
*store  shoppers'  who,  unknown  to  the  employers, 
make  purchases  and  report  on  the  treatment  re- 
ceived, commented  on  the  barbarous  English  used 
by  many  of  the  girls,  a  thing  naturally  distasteful 
to  a  fashionable  class  of  customers.  This  is  an  ex- 
ample of  the  small  problems  of  the  social  secretary. 
She  was  expected  to  bring  reform,  an  obviously  fear- 
some thing  to  attempt  with  superstitious  salesladies. 
In  this  store  the  department  heads  occasionally  give 
short  talks  on  business  subjects  to  the  employees. 
Thus,  without  arousing  resentment.  It  was  possible 
to  bring  in  a  humorous  lecturer  to  launch  the  gram- 
mar crusade.  He  gave  a  witty  character  monologue 
on  'The  Funny  Things  in  Business,'  dwelling  par- 
ticularly upon  the  grammatical  errors  and  solecisms 
he  had  frequently  heard.    There  were  many  of  them, 

282 


Welfare  Work 


such  as,  'We  ain't  kept  them  goods  yet,  ma'am.' 
His  hearers  were  convulsed  with  laughter,  the  les- 
son had  been  driven  home  without  one  of  them  be- 
ing offended.  The  way  thus  paved,  the  social  sec- 
retary presently  introduced  weekly  half-hour  les- 
sons in  simplified  business  phrases  such  as  are  con- 
stantly required  in  department-store  transactions. 
Subsequently,  the  scheme  was  expanded  to  take  in 
lessons  In  writing,  deportment,  etc."  ^ 

The  direction  of  "welfare"  plans  must  be  made 
an  organic  part  of  the  organization  and  adminis- 
tration of  the  business  as  a  whole.  Someone  has 
drawn  up  this  scheme  of  the  services  of  a  business  en- 
terprise: 

"Good  organization,  prevention  of  trouble,  in- 
cluding industrial,  audits,  consultation,  legislative 
counsel,  arbitration  proceedings;  formulating  em- 
ployees' demands  and  employers'  demands;  factory 
and  store  hygiene  reports;  safety  reports;  reports 
on  employment  departments  and  sources  of  labor 
supply,  on  selection,  training  and  education  of  work- 
ers In  factories  and  stores.  In  civil  service  methods 
In  factories,  stores,  railroads;  promotion  plans;  re- 
ports on  living-wage  plans,  profit-sharing  plans,  pen- 
sion and  Insurance  plans,  wages  and  cost  of  living, 
minimum  wage,  welfare  work;  reports  on  costs, 
waste  management  of  efficiency  work,  inspection 
methods,  reorganization;  reports  on  relations 
among  the  personnel;  Installation  of  records  of  In- 

^  J.  S.  Lopez :  "The  Social  Secretary,"  Harper's  Weekly, 
Mar.  9,  1912,  p.  11. 

283 


citizens  in  Industry 


dustrlal  relations;  reports  on  management-sharing 
plans,  committee  systems,  joint  boards,  trade  agree- 
ments, facilities  for  industrial  education  and  training, 
housing,  surveys  in  connection  with  city  and  common- 
wealth planning." 

While  this  scheme  is  drawn  up  for  an  association 
of  managers,  it  is  just  such  a  plan  as  would  have  to 
be  considered  by  any  wide-awake  modern  business 
corporation.  It  shows  clearly  that  no  one  "social 
engineer"  could  ever  master  and  direct  such  an  or- 
ganization alone;  and  that  the  general  policy  and 
many  details  must  be  decided  upon  specialist  advice 
by  persons  in  authority  in  the  corporation  or  firm. 

The  Ideals  of  the  "Capitalist  Managers." — The 
editors  of  Concordia  ^  help  us  to  see  ourselves 
as  others,  especially  Germans,  see  us,  in  a  critical  ar- 
ticle on  the  American  "Taylor"  system  of  efficiency. 

"We  can  recognize  at  once  the  entirely  sober,  prac- 
tical and  business  thinking  of  the  American.  The 
special  inducements  of  the  employers  are  to  him 
nothing  more  than  means  of  attracting  the  workman 
and  of  stimulating  him  to  work.  In  this  journal  we 
need  not  once  more  represent  to  our  readers  that 
the  entire  welfare  system  of  industrial  branches,  at 
least  according  to  the  German  view,  has  a  much 
deeper  meaning;  that  in  this  movement  another  de- 
cisive factor  Is  the  endeavor  to  maintain  a  steady, 
skillful  stock  of  operatives  who  take  satisfaction  in 
work;  and  that  before  all  else  the  idea  of  community 
in  labor,  mutual   help,   support  of  the  weak,    and, 

*  Concordia,  Berlin,  June  i,  1914. 
284 


Welfare  Work 


in  other  words,  that  higher  etliical  principles  are  es- 
sential and  controlHng  considerations.  It  cannot  be 
asserted  that  all  this  would  disappear  with  the  task 
system.  When  we  survey  the  entire  significance  of 
this  system,  we  should  exactly  here,  where  the  most 
intensive  increase  of  work  speed  is  sought,  not  fail  to 
urge  those  higher  requirements,  since  then  especially 
man  as  personality  must  be  set  in  apposition  to  the 
American  conception  of  man  as  a  machine." 

That  is  not  pleasant  reading  for  a  lover  of  the 
Union;  it  is  an  exceedingly  unpalatable  dose,  and  it 
is  by  no  means  exceptional  in  German  criticisms  of 
American  industrial  morality.  It  is  not  altogether  a 
fair  characterization  of  us  to  say,  as  German  writers 
often  do,  that  we  are  "worshipers  of  the  almighty 
Dollar,"  and  care  nothing  for  working  people.  The 
Socialists  of  Germany  might  be  quoted  to  show  that 
the  employers  there  are  not  all  as  tender  as  St.  Fran- 
cis and  as  just  as  Solomon.  But  we  can  afford  to 
forego  a  stinging  reply  and  extract  from  the  bitter 
fruit  its  wholesome  lesson  and  try  to  mend  our  ways. 
Just  because  at  present  the  ideals  of  the  capitalist 
managers  are  backed  by  the  greatest  financial  re- 
sources and  the  most  concentrated  social  and  politi- 
cal influence  is  it  of  supreme  national  moment  that 
they  guide  us  as  a  people  in  the  right  direction. 

Educating  Business  Managers  in  Social  Politics. — 
Evidently  the  initiation  and  administration  of  "wel- 
fare work"  lie  ultimately  in  the  hands  of  those  who 
control  and  direct  capital.  They  cannot  farm  out 
to  others  any,  even  the  slightest,  responsibility,  ex- 

285 


Citizens  in  Industry 


cept  in  matters  of  special  details.  The  engineering 
schools  and  the  higher  schools  of  business  must  rec- 
ognize that  men  are  not  educated  for  business  simply 
by  being  trained  in  the  technique  and  mechanics  of 
their  line  of  industry  or  commerce.  In  our  age  the 
most  vital  and  the  most  complex  problems  have  to 
do  with  the  management  of  large  groups  of  men 
whose  interests  and  ideals  are  facts  as  solid  as  the 
rate  of  interest,  the  law  of  Gresham,  or  the  resistance 
quality  of  metal  or  wood.  The  study  of  "social  poli- 
tics," in  the  largest  sense  of  the  word,  must  be  part 
of  the  preparation  of  all  ambitious  young  business 
men.  Not  even  a  study  of  law  will  be  sufficient;  for 
law  expresses  the  judgment  of  men  on  conditions 
which  have  largely  passed  away,  while  many  of  our 
problems  have  to  do  with  swift  adjustment  to  new 
situations.  Many  of  the  best  devices  for  improving 
physical,  economic  and  spiritual  welfare  could  never 
be  required  by  a  statute.  There  are  three  principal 
factors  in  successful  business  management:  mastery 
of  the  technique  of  the  industry,  mastery  of  the  tech- 
nique of  the  market  and  ability  to  get  on  with  the 
workmen  on  a  basis  of  humanity  and  justice.  It  is 
impossible  to  say  which  is  more  important.  The  pub- 
lic is  more  sensitive  than  formerly  to  abuses  of  power 
in  industry  and  commerce,  and  adjustment  of  busi- 
ness to  the  moral  demands  of  the  nation,  partly  ex- 
pressed in  social  legislation,  becomes  increasingly 
necessary  as  a  condition  of  success.  But  there  is  a 
further  consideration  which  weighs  heavily  with  a 
strong  man  of  the  highest  class — they  desire  to  be 

286 


Welfare  Work 


good  citizens,  they  have  ideals  of  service,  and  wish 
to  be  counted  with  Abu  Ben  Adhem  "as  one  who 
served  his  fellow-men."  Fortunately  for  themselves 
and  the  world  this  idealistic  vision  has  become  a  dom- 
inant factor  in  the  lives  of  many  of  the  worthiest 
representatives  of  the  capitalist  manager  group. 
"May  their  tribe  increase"  ! 


CHAPTER    IX 

MORAL  AND  RELIGIOUS  INFLUENCES 

The  first  Cooperative  Safety  Congress  met  at 
Milwaukee  In  19 12;  It  was  called  by  the  Associa- 
tion of  Iron  and  Steel  Electrical  Engineers  and  in 
it  were  represented  not  only  the  state  and  federal 
governments,  but  also  great  corporations,  insurance 
companies  and  students  of  social  politics  In  the  large 
sense.  The  Chairman,  Dr.  Lucian  W.  Chaney,  De- 
partment of  Commerce  and  Labor,  at  the  first  mo- 
ment said:  "I  wish  to  Impress  upon  those  present 
that  the  effort  In  which  we  have  entered  is  distinctly 
a  phase  of  applied  Christianity;  and  therefore  it  is 
exceedingly  appropriate  that  we  invite  Dr.  Steiner, 
Professor  of  Applied  Christianity  in  Grinnell  Col- 
lege, to  offer  a  word  of  prayer  as  we  begin."  In 
this  prayer  these  thoughts  are  expressed:  "May 
our  consideration  of  the  safety  of  labor  and  the 
toiler  be  rewarded  by  a  higher  respect  for  human- 
ity as  a  whole,  a  greater  regard  for  law,  a  purer 
and  deeper  and  higher  patriotism.  May  it  (the 
work)  be  as  solemn  as  it  is  sacred,  and  may  it  be 
as  useful  as  we  try  to  make  it  holy.  We  ask  it  all 
in  the  Master's  name,  who  gave  himself  for  the 
good  of  men." 

288 


Moral  and  Religious  Influences 


THE  MORAL  STANDARDS  IN   INDUSTRY  AND  ITS 
ADMINISTRATION 

The  mental  confusion  of  conflicting  ethical  stand- 
ards is  a  tragical  phenomenon  of  our  times;  and 
until  agreement  can  be  reached  on  matters  of  prin- 
ciple, the  very  conscience  of  men  will  induce  them 
to  fight  for  what  they  believe  is  right,  though  it  is 
anti-social.  Moral  beliefs  and  judgments  as  to 
rights  and  duties  are  profoundly  influenced  by  expe- 
rience, by  contact  with  the  hard  realities  of  the 
everlasting  struggle  for  existence  and  for  power. 
Attention  has  often  been  called  to  the  persistence 
down  into  our  own  times  of  "tribal  morality";  that 
is  the  recognition  of  the  rights  of  persons  who  be- 
long to  a  certain  group  or  race,  while  all  outside 
that  circle  are  aliens  and  enemies  without  rights. 

The  mischief  of  this  "tribal  morality"  is  that  it 
Is  mostly  below  the  threshold  of  consciousness,  a 
submarine  torpedo,  a  deadly  floating  mine  in  the 
path  of  travel.  We  live  in  such  restricted  groups 
that  we  know  comparatively  little  of  the  inner  stand- 
ards of  near  neighbors  until  an  explosion  occurs.  We 
may  be  able  to  see  the  mote  in  our  neighbor's  eye  and 
not  discern  the  beam  in  our  own.  We  may  soon  look 
down  with  pity  or  contem^pt  upon  the  "class  con- 
sciousness" of  a  supposedly  inferior  class  and  never 
suspect,  even  at  church,  that  our  own  bigotry  is  hid- 
ing our  narrowness  from  ourselves.  It  must  be  a 
shrewd  father  confessor,  well  trained  in  social  psy- 
chology, who  can  aid  his  penitent  to  discover  when 

289 


Citizens  in  Industry 


he  has  transgressed,  when  the  very  standards  of  right 
and  wrong  are  so  widely  apart. 

There  is  need  of  patience  and  teaching,  in  rela- 
tion to  trade  unions.^  "Deceit  and  fraud  are  always 
sanctioned  by  the  folk-custom  of  persecuted  or  op- 
pressed groups,  because  it  is  by  these  means  only 
that  they  are  fitted  to  survive  the  uncontrolled  domi- 
nation of  a  master  race." 

This  same  tribal  morality  is  found  in  shops. 
Among  the  unorganized  laborers  it  takes  the  form 
of  deceit  and  pretense;  among  the  organized  it  may 
assume  the  shape  of  sabotage  against  employers  and 
of  club  "persuasion"  of  "scabs."  Examples  of  this 
tribal  morality  are  given  by  employers.  "Com- 
plaints came  from  our  men  (non-union)  that  they 
were  being  abused.  Hot  rivets  were  being  dropped 
on  them;  monkey  wrenches  and  like  objects  were 
dropped  on  them  from  above,  all  claiming  to  be 
accidental.  When  they  were  remonstrated  with  a 
fight  ensued,  and  twelve  or  thirteen  of  our  men  were 
sent  to  a  hospital."  The  business  agent  was  known 
to  be  a  crook,  yet  he  was  retained  in  office  by  the 
union.  Later  the  union  broke  its  agreement;  men 
were  called  out  on  flimsy  pretexts  and  the  superin- 
tendent was  attacked  by  a  riotous  mob  and  badly  in- 
jured.   The  output  was  lowered  36  per  cent.^ 

Is  there  any  remedy?  Making  the  trade  unions 
responsible  in  their  funds  by  incorporation  has  gen- 

^  Page :     Trade  Morals,  p.  191. 

2  Mr.  Piez:  Testimony  before  the  Industrial  Commission, 
1914, 

290 


Moral  and  Religious  Influences 

erally  been  proposed  by  employers.  The  trade 
unions  refuse  this  because  they  do  not  trust  the 
courts.  This  would  at  best  be  a  superficial  remedy, 
of  doubtful  efficiency  so  long  as  the  present  creed  of 
unions  persists.  That  creed  has  been  produced  by 
their  subjection  to  capitalistic  management;  they  see 
no  other  way  to  protect  themseh-es,  to  survive,  ex- 
cept through  deceit  and  sabotage,  or  by  organizing 
a  military  government  over  against  the  state.  The 
only  way  to  change  the  creed  is  to  remove  its  cause; 
when  working  people  see  and  feel  that  they  have  a 
legal  right  to  an  impartial  hearing,  and  are  no 
longer  under  a  domination  which  will  not  tolerate 
open  discussion  by  their  own  representatives,  the 
tribal  miorality  will  slowly  yield  to  that  permitted  by 
a  higher  morality,  that  of  free  men  in  a  democratic 
nation.  They  cling  to  the  union  in  spite  of  the  heavy 
dues,  the  severe  discipline,  financial  burden,  and  im- 
moral methods,  because,  in  the  matter  of  wages,  they 
have  no  other  mode  of  securing  quasi-public  repre- 
sentation. So  long  as  capitalistic  managers  deny 
that  their  own  rule  is  absolute  and  arbitrary,  no  mat- 
ter how  philanthropic  their  intentions  and  feelings — 
so  long  there  will  be  no  prospect  of  national  morality 
replacing  tribal  morality,  In  the  hearts  of  the  wage- 
earners. 

Mr.  John  H.  Walker,  a  labor  leader,  explained 
Industrial  unrest  by  what  he  called  "the  double 
standard."  "A  worklngman  Is  expected  to  do  a  fair 
day's  work  for  a  fair  day's  pay — to  work  at  least 
eight  hours  a  day  and  not  to  demand  more  than  Is 

291 


Citizens  in  Industry 


sufficient  for  him  to  maintain  himself  decently.  No 
such  restriction  is  placed  upon  the  value  of  a  business 
man's  or  employer's  services.  He  is  expected  to  get 
as  much  money  as  he  can  and  the  more  he  gets  the 
more  credit  he  receives.  Workers  feel  this  either 
consciously  or  unconsciously,  and  it  gives  them  a 
sense  of  injustice.  They  feel  they  are  nonentities 
and  only  so  many  tools,  with  no  consideration  ac- 
corded them,  and  that  they  must  submit  to  the  ca- 
price of  the  other  side  as  to  whether  they  shall  have 
a  living  at  all." 

Under  such  conditions  the  open  shop  is  not  a  work- 
place; it  is  only  a  newly  fortified  trench  for  another 
battle. 

The  significance  of  tribal  morality  for  our  discus- 
sion lies  in  the  fact  that  in  and  through  welfare  work 
the  managers  of  industry  have  a  chance  gradually  to 
experiment  with  the  earlier  stages  of  approach  to  a 
real  democracy  in  industry  which  alone  can  supply 
tuition  in  the  higher  social  morality.  While  men 
wait  and  hesitate  Socialism  lurks  at  the  door.^ 

Religion:  Dangers  and  Obstacles. — In  a  homoge- 
neous community,  where  a  state  church  is  at  least 
passively  accepted  by  the  people  of  the  neighbor- 
hood, the  patriarchal  patron  may  encounter  no  op- 
position in  providing  moral  and  spiritual  agencies 
for  those  who  are  in  his  employment.  It  may  be 
taken  as  a  matter  of  course  when  he  provides  a 
chapel,  supports  a  minister  and  offers  ethical  guid- 
ance at  his  own  cost.     But  this  idyllic  condition  is 

^Page:    Trade  Morals,  p.  211, 
292; 


Moral  and  Religious  Influences 

now  rare  in  Europe  and  America;  and  generally  the 
adult  workmen  resent  any  attempt  on  the  part  of 
their  employers  to  interfere  with  their  spiritual  life 
or  to  direct  their  morals.  Many  urban  workmen  de- 
test what  they  regard  as  the  moral  standards  of 
capitalists  and  their  representatives  in  respect  to  in- 
dustrial relations.  In  our  American  cities  we  have 
a  composite  crowd  of  men  of  all  creeds  and  of  none: 
families  of  all  tongues  who  have  at  least  one  thing 
in  common — they  cannot  understand  a  service  con- 
ducted in  English, 

The  antagonisms  of  economic  strife  are  also  likely 
to  cause  men  to  look  with  a  degree  of  suspicion  on 
any  doctrine  which  is  favored  by  the  managers.  The 
employee  is  often  ready  to  expect  some  doctrine 
which  teaches  passive  obedience  while  he  is  strug- 
gling for  his  rights  and  interests;  and  he  is  inclined 
to  imagine,  when  he  hears  of  the  joys  of  Heaven, 
that  it  is  an  attempt  to  divert  his  attention  from  col- 
lective bargaining  for  higher  income  in  this  world. 

It  must  be  obvious  that  the  supreme  factor  in  ex- 
ercising moral  and  religious  influence  with  employ- 
ees is  the  character  and  conduct  of  the  employer  who 
professes  to  hold  to  a  high  moral  and  religious 
standard.  It  is  of  course  essential  to  a  wholesome  in- 
fluence that  the  employer  give  evidence  of  trying  to 
live  up  to  the  current  moral  standards;  that  he  be 
sober,  decent,  clean,  just,  kind  and  good  to  his  fam- 
ily and  neighbors. 

But  of  late  it  has  become  clear  to  many  working- 
men  that  an  employer  may  exhibit  all  the  traditional 

293 


Citizens  in  Industry 


and  conventional  virtues  required  by  the  church  and 
yet  be  to  them  practically  a  bad  man.  He  may  pay 
"good  wages,"  have  a  clean  shop  or  mill,  require  no 
more  than  legal  hours  of  labor,  and  yet  he  may  rep- 
resent to  them  a  hard  tyranny,  a  barrier  to  their 
progress,  a  destroyer  of  their  hopes.  The  more 
sensible,  logical,  and  Instructed  among  them,  espe- 
cially If  they  have  Imbibed  the  fundamental  Ideas 
of  Socialism,  may  not  feel  direct  personal  hatred 
against  an  Individual  capitalist  manager;  they  will 
say  that  he  Is  just  as  much  a  dupe  and  slave  of  the 
present  system  as  they  are.  They  know  that  the 
most  powerful  corporation  cannot  at  once  escape 
from  complicity  with  conditions  which  wreck  health 
and  reward  those  who  do  the  hardest  labor  with  a 
pittance  and  then  cast  them  Into  the  rubbish  heap 
when  they  are  Injured  or  aged.  The  new  moral  re- 
quirement Is  that  an  employer  give  evidence  that  he 
Is  not  only  trying  to  do  the  best  he  can  for  his  em- 
ployees under  present  conditions,  but  that  he  Is 
helping  them  change  the  system  itself  to  make  a 
higher  morality  possible.  And  here.  In  the  present 
state  of  divided  class  opinion,  agreement  Is  prac- 
tically hopeless,  although  It  may  be  possible  to  secure 
a  better  understanding  of  the  exact  points  at  issue. 
Gratitude  Is  not  always  to  be  expected.  Misun- 
derstandings are  Inevitable;  and  therefore  the  re- 
sponsible manager  of  a  great  concern  must  base  his 
sense  of  duty  on  some  deeper,  broader  and  more 
durable  foundation  than  expectation  of  grateful  rec- 
ognition.     Many   an    employer,   starting   with   the 

294 


Moral  and  Religious  Influences 

hope  of  winning  the  pleased  appreciation  of  those 
whom  he  sought  to  benefit,  has  been  painfully  dis- 
illusioned, and  has  given  up  his  high  project,  on 
which  he  was  ready  to  spend  much  money,  with  dis- 
gust, and  a  firm  determination  ever  after  to  "do 
business  on  business  principles" — whatever  that  may 
mean — and  leave  philanthropy  and  religion  to 
dreamers.  Deeper  reflection  may  temper  this  harsh 
conclusion,  and  the  profound  study  of  social  evo- 
lution may  explain  to  the  philosophic  mind  that  an- 
tagonism in  social  creeds  arises  inevitably  from  eco- 
nomic class  struggle  for  a  larger  share  of  the  profits. 
Only  as  we  see  that  the  spiritual  values  are  in  the 
calm  places  at  ocean  depths  below  these  surface 
waves,  can  we  retain  equanimity  and  promote  the 
eternal  interests,  whatever  may  happen  in  our  time. 

The  wisest  employers  know  well  that  their  duty 
should  be  determined  by  their  own  convictions  and 
ability,  not  by  the  accidental  element  of  appreciation 
by  others.  Martyrs  in  both  science  and  religion  have 
had  bread  to  eat  which  the  multitude  could  not  dis- 
cover; if  they  had  waited  for  thanks,  praise  or  gold, 
the  world  would  have  been  poorer.  But  time  reveals 
all  that  is  genuine;  and  the  honest  man,  however  mis- 
understood, has  "light  in  his  own  clear  breast"  and 
does  his  duty  whether  those  for  whom  he  strives 
praise  or  blame.  Little  as  some  wage-earners  believe 
it,  there  are  rich  men  who  are  also  men  of  conscience; 
neither  hypocrisy  nor  nobility  is  bounded  by  eco- 
nomic class  lines. 

Simply  on  grounds  of  efSciency  in  method  the  offer 
295 


Citizens  in  Industry 


of  spiritual  service  must  take  on  democratic  form 
to  be  useful  and  acceptable.  If  a  rich  man  wishes  to 
build  a  church  or  establish  a  lectureship  it  must  be 
done  as  a  member  of  the  community,  not  as  a  mark 
of  overlordship.  Many  a  time  the  artisans  have 
left  the  fine  church  empty  and  assembled  within  bare 
walls  in  order  to  worship  with  free  and  sincere  souls. 

Ability  defines  responsibility;  control  of  some  of 
the  conditions  of  physical  and  soul  life  lies  with  the 
employer,  whether  individual  capitalist  or  corpora- 
tion, and  with  control  goes  corresponding  duty.  We 
may  note  here  some  of  the  ways  in  which  employers 
have  made  an  effort  to  meet  the  requirements  of 
their  position. 

Libraries. — The  library  may  be  m.ade  one  of  the 
most  attractive,  popular  and  persuasive  agencies  of 
forming  good  character.  It  occupies  a  considerable 
place  in  many  "welfare"  schemes,  both  in  Europe- 
and  America.  Its  advantage  lies  in  the  fact  that  it 
is  impersonal,  unobtrusive,  does  not  demand  a  con- 
fession of  sin  from  its  patrons,  nor  administer  to 
them  a  rule  of  penance  nor  require  subscription  to  a 
creed.  Its  disadvantage  is  that  it  does  not  offer  per- 
sonal friendship,  sociable  interplay  of  thought  and 
emotion,  or  any  form  of  outward  activity.  A  taste 
for  good  reading  must  be  acquired,  and  books  are 
by  no  means  a  source  of  joy  to  the  primitive  man. 
In  spite  of  their  limitations  "good  books  are  the  life 
blood  of  master  spirits"  and,  once  invited  to  ac- 
quaintanceship, they  are  among  the  noblest  allies 
of  virtue  and  faith. 

296 


Moral  and  Religious  Influences 

Protection  of  Girls  in  Work-places. — The  protec- 
tion of  girls  in  shops  and  mercantile  establishments 
is  a  serious  duty  of  employers,  one  which  cannot  well 
be  fixed  by  statute.  In  some  stores  women  are  re- 
quired to  leave  the  place  in  the  evening  by  the  front 
door  in  order  to  avoid  a  dark  street  and  start  on 
their  way  home  in  a  lighted  and  protected  highway. 
Detectives  are  sometimes  employed  to  mark  and 
punish  lewd  fellows  of  the  baser  sort  who  are  always 
watching  for  a  prey  to  their  lust. 

Since  floor-walkers  and  foremen  have  been  known 
to  make  improper  advances  to  girls  the  rule  has  been 
announced  by  certain  employers  that  the  girls  can 
come  directly  to  the  head  office  if  they  have  difficul- 
ties or  desire  to  present  complaints. 

An  efficient  woman  social  secretary  is  a  good  pro- 
tector of  girls,  and  they  are  more  apt  to  lay  their 
grievances  before  her  than  before  a  man.  Such  a 
social  secretary  should  be  a  woman  who  has  brought 
up  daughters  of  her  own  and  has  had  wide  life  ex- 
perience. 

Farming  Out  the  Task. — Some  of  the  largest  cor- 
porations in  the  United  States  have  gone  about  the 
work  of  providing  spiritual  influences  by  subsidizing 
the  Y.  M.  C.  A.,  and,  in  a  few  cases,  the  Y.  W.  C.  A., 
where  girls  and  women  were  concerned.  The  ad- 
vantages of  this  course  are  obvious.  These  associa- 
tions have  developed  a  marvelous  organization  and 
technique;  they  have  recruited  and  trained  a  loyal, 
enthusiastic  and  able  corps  of  agents  who  know 
what  to  do ;  they  are  undenominational  and  respect- 

297 


Citizens  in  Industry 


ful  toward  those  who  hold  different  creeds  or  none. 
They  have  a  genial  spirit  and  seek  to  satisfy  all  sorts 
of  legitimate  wants,  whether  they  are  labeled  "re- 
ligious" or  not.  They  do  not  annoy,  nor  threaten, 
nor  tease  patrons  and  members.  They  make  the  dis- 
tinctly religious  services  as  attractive  and  helpful 
as  possible,  but  do  not  make  other  enjoyments  of 
their  privileges  depend  on  attendance  at  prayer- 
meetings;  so  that  persons  who  reject  their  creed  can 
enjoy  their  tennis  grounds  and  swimming  pools. 

These  advantages  have  been  discussed  and  ap- 
preciated by  many  railway  and  other  companies  who 
have  spent  the  money  of  stockholders  to  establish 
and  maintain  the  Y.  M.  C.  A.,  on  the  ground  that 
whatever  helps  character  and  conduct  increases  in- 
dustrial efficiency  and  hence  enlarges  dividends. 
Very  able  business  men  believe  that  this  is  a  paying 
investment.  This  is  not  the  highest  motive,  but  it 
answers  the  purpose  of  providing  funds,  and  justi- 
fying expenditures  with  stockholders. 

Not  only  labor  leaders  but  employers  have  often 
entered  into  friendly  cooperation  with  the  representa- 
tives of  the  Association.  More  than  300  associa- 
tions serve  thousands  of  immigrants  every  year;  they 
meet  immigration  trains,  guide  men  to  their  friends, 
protect  them  from  exploitation,  find  employment 
for  them,  take  them  to  good  boarding  houses  and 
attract  them  to  ways  of  honesty  and  clean  living. 
These  immigrants  are  gathered  into  naturalization 
classes,  taught  the  rights  and  obligations  of  citizen- 
ship, helped  to  take  out  their  papers.    In  one  recent 

298 


Moral  and  Religious  Influences 

year  more  than  1500  teachers  were  employed  to 
teach  foreigners  in  1,221  classes,  and  these  teachers 
were,  for  the  most  part,  unpaid  volunteers  who  were 
ready  to  serve  their  fellow-men,  their  country  and 
their  God.  Nearly  200,000  men  were  brought  Into 
halls,  schools,  vestries,  social  centers  to  listen  to 
lectures  upon  topics  of  interest  to  Industrial  work- 
ers, such  as:  the  discovery  of  America,  Independence, 
naturalization,  patriotism,  the  life  of  Christ,  the 
life  of  Lincoln,  of  Franklin,  of  Washington,  or  In- 
dustries of  the  United  States. 

Colleges,  universities  and  technical  schools  have 
enlisted  In  this  service.  Probably  more  than  3,500 
undergraduates  are  teaching  60,000  workingmen  and 
boys  each  week  In  definite  constructive  service,  while 
3,000  graduates  are  promoting  the  movement.  "In 
one  college  town  through  the  entire  winter,  the  son 
of  a  railway  magnate  who  has  25,000  men  under 
him,  taught  a  group  of  foreign  laborers  In  one  of 
the  worst  districts  of  the  city."  These  students  will 
In  a  few  years  be  leaders  In  commerce,  captains  of 
Industry,  legal  advisers,  members  of  legislatures,  of- 
ficials of  public  administration,  and  they  will  be 
prepared  for  Intelligent  sympathy  with  working  peo- 
ple; they  will  know  how  to  manage  men  with  less 
friction  and  better  mutual  understanding. 

Naturally  these  students  try  to  help  the  working 
boys  and  men  In  the  line  of  their  present  needs, 
holding  educational  classes  In  English,  mathematics, 
mechanics,  drawing,  plan-reading,  first  aid  to  the 
sick  and  Injured;  but  also  leading  in  factory  games 

299 


Citizens  in  Industry 


and  sports;  organizing  and  conducting  boys'  edu- 
cational, social,  dramatic  and  athletic  clubs,  Boy 
Scout  patrols  of  factory  apprentices,  work  of  Big 
Brothers  for  lads  with  wayward  tendencies,  camps 
and  "hikes"  in  the  country  for  Sunday  outings  in 
the  summer.^ 

Naturally  religious  young  men  will  by  work  and 
deed  influence  the  beliefs,  ideals,  character  and  con- 
duct of  these  thousands  of  boys  and  men  whom  they 
serve.  It  is  difficult  to  see  how  employers  desiring 
to  help  the  higher  life  of  the  employees  can  find  a 
better  agency  for  the  purpose. 

Methods  of  Y.  M.  C.  A.:  in  Camps. — Some  con- 
crete illustrations  will  make  clear  the  essential  char- 
acter of  this  service.^ 

The  man  who  introduces  welfare  work  for  the 
sole  purpose  of  prev^enting  labor  disputes  will  prob- 
ably be  somewhat  disappointed.  Real  welfare  work 
belongs  to  "love"  more  than  to  "expediency."  Yet, 
men  are  not  wholly  lacking  in  the  industrial  world 
who  are  willing  to  spend  a  few  hundreds  of  dol- 
lars in  a  generous  way  to  keep  down  discontent 
that  might  cost  them  a  ten  per  cent,  increase  in 
wages. 

^  Particulars  will  be  furnished  by  addressing  Secretary, 
Industrial  Service  Movement,  Y.  M.  C.  A.,  124  East  28th 
St.,  New  York  City. 

2  Truman  S.  Vance  (former  Industrial  Secretary,  Inter- 
national Committee,  Y.  M.  C.  A.,  Warrenton,  Va.)  :  Article 
entitled  "Welfare  Work  as  a  Way  to  Prevent  Labor  Dis- 
putes" in  Annals  of  the  American  Academy,  Sept.,  1910, 
127  ff. 

300 


Moral  and  Religious  Influences 

In  the  case  of  the  Wlnlfrede  Coal  Company,  em- 
ploying nearly  a  thousand  men  at  WInifrede,  West 
Virginia,  the  welfare  work  done  by  the  association 
helped  the  company  in  many  ways  in  their  dealing 
with  their  employees.  The  fact  that  the  company 
officials  seemed  really  interested  In  the  men  for  their 
own  good  had  weight  with  the  men  in  time  of  pend- 
ing strikes,  etc.  In  1893  a  serious  strike  was  averted 
when  the  men  with  nearly  all  the  surrounding  com- 
panies had  struck. 

"The  causes  of  labor  disputes  are  often  as  imag- 
inary as  real.  Without  doubt  there  are  numberless 
cases  of  unfair  division  of  profits,  wages,  on  one 
hand,  and  dividends  on  the  other,  being  out  of  pro- 
portion to  the  service  rendered;  or  conditions  and 
surroundings  of  the  workers  may  be  needlessly  bad. 
But  often  workers  waste  their  wages  in  dissipation 
and  are  rendered  surly  and  discontented  by  the 
thought  that  years  of  labor  have  left  them  nothing 
the  gainer  in  anything.  The  welfare  work  done 
by  the  Young  Men's  and  Young  Women's  Christian 
Associations  in  industrial  fields  wisely  lets  alone  the 
question  of  wages  and  dividends  and  confines  their 
work  to  the  betterment  of  morals  and  environment. 
While  I  was  employed  looking  after  some  cotton- 
mill  work  In  the  South,  there  came  to  me  confidential 
reports  of  a  marvelous  work  being  done  in  some  con- 
struction camps  along  the  line  of  the  Chicago,  Mil- 
waukee and  St.  Paul  Railroad  extension  to  Seattle. 
.  .  .  The  first  point  where  work  was  taken  up  was 
at  Pontis,  South  Dakota,  where  some  five  hundred 

301 


Citizens  in  Industry 


men  were  building  a  $2,000,000  bridge  over  the  Mis- 
souri River.  Every  bunkhouse  was  full  to  overflow- 
ing and  many  sleeping  in  box  cars;  but  the  company 
agreed  to  send  up  an  old  passenger  coach  to  be  used 
for  Y.  M.  C.  A.  purposes.  Allow  me  to  quote  from 
International  Secretary  Day's  Report:  'I  found 
there  was  no  one  in  charge  of  mail  for  the  camp, 
and  as  a  consequence  it  was  brought  from  the  little 
post-office  at  Flora,  two  miles  away,  at  irregular  in- 
tervals and  dumped  onto  the  counter,  where  were 
sold  tobacco,  overalls,  etc.,  with  the  result  that  in 
such  a  promiscuous  mess  it  was  a  common  occur- 
rence to  have  letters  lost,  or  the  envelopes  worn  out 
before  they  reached  the  owner.  Then,  too,  it  was 
impossible  for  anyone  to  register  a  letter,  or  secure 
a  draft  from  the  bank  at  Mobridge,  which  was  the 
only  way  for  them  to  send  money  home,  without 
losing  a  half-day's  work.  So  I  suggested  to  Mr. 
Morrison  that  he  immediately  take  charge  of  the 
mail  in  the  camp,  build  pigeon-holes  for  the  letters 
and  provide  boxes  for  paper,  etc.,  and  also  offer  to 
register  letters  for  the  men  and  provide  them  with 
postage  or  other  conveniences.  We  also  got  out 
immediately  a  large  quantity  of  letterheads  and 
stocked  up  with  pens,  ink,  etc.,  and  provided  every 
bunkhouse  with  suitable  writing  materials  and  urged 
the  men  to  write  letters  home,  offering  to  mail  them 
twice  a  day.  The  effect  of  this  was  that  even  the 
foreigners  who  could  not  understand  our  language 
could  understand  our  kindness,  and  they  felt  kindly 
toward   Mr.    Morrison.      The   result  of   this   work 

302 


Moral  and  Religious  Influences 

was  that  the  number  of  letters   written  home   in- 
creased threefold  immediately.' 

"One  of  the  worst  evils  in  these  camps  is  the 
cashing  of  pay  checks  in  the  saloons.  This  is  a 
great  convenience  to  the  men,  because  they  cannot 
go  to  town  and  get  their  checks  cashed  without  los- 
ing a  half-day's  work.  The  result  is,  that  they  go  to 
these  places  after  work  is  over,  and  the  saloons  al- 
ways make  it  a  business  to  have  money  on  hand  for 
cashing  these  checks ;  they  invariably  get  a  consider- 
able part  of  it  back  in  the  drinks,  gambling  and  other 
evils  which  are  found  in  such  places.  I  was  able 
to  induce  the  banker  to  send  the  money  to  the 
Y.  M.  C.  A.  car  on  the  condition  that  the  Y.  M. 
C.  A.  Secretary  guard  the  money,  for  it  is  a  risky 
thing  to  carry  money  three  miles  in  a  buggy  in  that 
country  where  every  man  is  a  law  unto  himself.  At 
the  appointed  hour  Morrison  appeared  at  the  bank 
mounted  on  a  'calico'  broncho  with  a  six-shooter  in 
his  belt,  escorted  the  money  to  the  camp,  where 
he  guarded  it  while  it  was  being  paid  out;  at  the  same 
time  he  urged  each  man  as  he  received  his  money  to 
deposit  a  part  of  it  with  the  banker;  and  as  a  result 
over  $2,000  was  put  back  into  the  banker's  hands 
to  the  credit  of  those  hard-working  men,  making 
over  $8,000  which  these  men  have  been  induced  to 
save  or  send  home  in  three  months  that  Morrison 
has  been  there,  four  times  as  much  as  they  would 
have  saved  before.  It  had  been  customary  there 
for  several  months  to  have  at  least  fifty  drunken 
men  in  the  camp  immediately  following  pay  day, 


Citizens  in  Industry 


and  It  was  an  established  rule  that  the  cooks  would 
get  drunk.  The  first  time  the  checks  were  cashed 
by  the  Y.  M.  C.  A.  there  were  but  two  drunken  men 
in  the  camp  and  none  of  the  cooks  were  drunk,  much 
to  the  surprise  of  the  management,  and  I  Imagine  to 
the  disappointment  of  the  saloons  at  Mobridge." 

The  Church. — The  most  economical  and  accept- 
able assistance  to  church  work  is  a  contribution  of 
land,  buildings  or  money  to  the  religious  organiza- 
tions to  which  the  employees  and  their  families  are 
attached,  but  proselyting  investments  pay  meager 
dividends. 

In  this  chapter  no  attempt  will  be  made  to  dem- 
onstrate the  reasonable  and  high  value  of  religion 
and  of  the  church;  the  arguments  and  evidence  have 
often  been  presented  in  cogent  and  attractive  form. 
We  venture  to  assume  a  degree  of  Interest  in  the 
subject  for  its  own  sake. 

Religion  cannot  be  "proved"  to  have  value;  that 
is  to  say,  one  cannot  know  the  subjective  worth  of 
an  experience  except  by  living  in  that  experience  for 
himself.  This  is  true  of  the  enjoyment  of  music, 
poetry,  painting,  architecture  and  scientific  pursuits, 
of  morality,  as  well  as  of  religion.  The  only 
"proof"  of  the  value  of  any  of  those  Interests  is  by 
living  personally  the  life  of  the  artist,  amateur,  or 
investigator,  and  then  doubt  becomes  impossible. 
Some  of  the  external  and  social  consequences  of 
morals,  art  and  religion,  on  the  other  hand,  may  be 
observed  by  an  inditierent  outsider;  and  something 
is  due  to  the  testimony  of  honest  souls.     Supersti- 


Moral  and  Religious  Influences 

tlon  may  be  mixed  up  with  very  precious,  sacred  and 
noble  feelings;  but  the  man  of  discernment  will  not 
scorn  the  sense  of  reverence  and  devotion  to  Ideals 
because  it  expresses  itself  in  symbols  which  to  the 
critic  are  meaningless. 

Taking  our  immigrant  working  people  as  they 
come  to  us,  we  may  think  them  a  horde  of  bigoted 
aliens,  and  they  are  likely  to  regard  our  ecclesiastical 
buildings,  rites  and  creeds  as  detestable.  But  they 
love  the  ancient  church  in  which  their  ancestors  lived 
and  died,  the  church  which  consecrated  the  Infants 
when  they  were  born,  consoled  the  sorrowful,  sol- 
emnized their  marriages,  and  pierced  the  gloom  of 
death  with  illuminating  hopes.  Superstitions  and 
prejudices  will  gradually  melt  away  in  the  light  of 
knowledge.  Sympathies  will  soon  broaden  with  en- 
larged experience,  especially  if  the  immigrants  are 
treated  like  human  beings  and  become  accustomed 
to  justice  and  fair  dealing.  But  the  deep  roots  of 
their  morality  and  good  citizenship  must  not  be  ruth- 
lessly torn  up  by  proselytism,  ridicule  or  scorn.  We 
must  learn  to  look  beneath  the  surface  and  discern 
the  reality,  the  spiritual  essence  of  the  faith  of  the 
aliens.  If  we  have  the  means  to  do  so,  we  may  help 
them  to  build  their  sanctuaries  and  support  their 
priests  and  parochial  schools.  Time  and  community 
contacts  will  soften  the  antagonisms  and  prejudices. 
The  newspaper,  theater,  conversation,  political  dis- 
cussions, trade-union  movements,  personal  acquaint- 
ance, will  open  their  minds  to  new  ideas.  Truth 
will  make  its  own  way. 

305 


Citizens  in  Industry 


Men's  souls  are  narrow;  let  them  grow; 
My  brothers,  we  must  wait. 

The  justly  famous  Robert  Owen,  with  all  his  sa- 
gacity and  undoubted  goodwill,  failed  to  meet  the 
religious  needs  of  his  employees  because  he  lacked 
the  historic  sense  and  adequate  imagination;  he 
thought  that  he  could  make  a  brand-new  liturgy 
which  was  better  than  evolution  had  produced;  and 
that  the  people  would  instantly  see  the  rationality 
of  his  simpler  ethical  creed.  His  plans  were  wrecked 
on  a  conception  of  human  nature  which  had  no  jus- 
tification in  experience.  Churches  are  growths,  not 
manufactured  articles.  And  the  man  of  means  who 
wishes  to  help  the  spiritual  and  moral  life  of  the 
community  must  take  what  the  ages  have  developed 
and  use  it,  rather  than  attempt  to  make  a  new  insti- 
tution on  a  pattern  from  his  own  fancy.  Institutions 
are  stubborn;  they  have  taken  time  to  evolve  and 
they  are  not  easily  set  aside.  The  wise  leader 
will  get  all  the  good  possible  out  of  the  ancient  and 
sacred  institutions  and  v»ill  modestly  wait  for  the 
slow  but  sure  transformations  wrought  by  the  ad- 
vance of  science,  criticism,  and  education.  This  is 
not  only  the  most  effective  plan  but  it  is  also  the 
cheapest,  because  it  utilizes  what  the  ages  have  of- 
fered ready  made.  The  ecclesiastical  plant  is  a  free 
gift  of  the  past;  the  holy  iniluence  of  memory  and 
reverence  for  the  honored  dead,  of  forefathers  and 
country,  of  poetry  and  music,  is  something  that  can- 
not be  extemporized.     There  is  also  the  problem  of 

306 


Moral  and  Religious  Influences 

recruiting,  selecting,  educating  and  disciplining  the 
pastors.  Under  present  circumstances  this  requires 
the  cooperation  of  organized  and  responsible  eccle- 
siastical authorities  who  can  vouch  for  the  character 
and  acquired  qualifications  of  members  of  the  minis- 
terial profession.  The  people  will  hardly  trust  free 
lances  in  the  intimate  personal  relations  of  soul  cure. 
For  this  reason  it  is  unsafe  to  ignore  the  historic  in- 
stitutions of  the  land  and  age  and  set  up  a  merely 
local  and  personal  establishment  which  must  of  ne- 
cessity bear  the  marks  of  individual  caprice. 

Many  of  us  would  be  glad  to  see  all  the  churches 
in  each  community  consolidated  into  one  system. 
This  would  conform  to  the  modern  business  tend- 
ency to  close  up  the  little  shops  which  do  not  pay 
expenses  and  combine  capital  and  labor  in  great  es- 
tablishments provided  with  the  best  modern  machin- 
ery and  directed  by  the  most  capable  superintendents. 
Apparently  the  drift  of  ecclesiastical  life  is  in  this 
direction,  but  it  is  a  dignified  and  tedious  glacial 
drift.  The  great  Protestant  denominations  are  grad- 
ually absorbing  the  smaller  bodies  which  are  akin, 
and  union  churches  or  federations  are  bringing  mem- 
bers of  various  confessions  into  some  kind  of  co- 
operative organization  for  practical  ends.  The 
charity  organization  societies,  with  their  central  reg- 
istration, act  as  a  clearing  house  for  all  benevolent 
individuals  and  churches.  The  Y.  M.  C.  A.  and  the 
Y.  W.  C.  A.  serve  as  common  instruments  by  which 
all  the  Protestant  churches  serve  the  spiritual  needs 
of  youth.    The  mother  church  of  Rome  is  already  an 

307 


Citizens  in  Industry 


International  "trust"  of  religious  forces,  and  asks 
no  advice  from  the  "sects."  He  would  be  an  auda- 
cious prophet  who  would  venture  to  predict  how 
rapidly  this  process  of  consolidation  may  be  carried 
during  the  next  generation.  If  anyone  is  disposed  to 
be  too  optimistic  about  the  death  of  sectarianism 
his  boldness  may  cool  at  the  intrusion  of  new  pes- 
tiferous dissenters  disturbing  the  peace  in  the  camp 
of  the  unionists.  Evidently  the  human  mind  is  ever 
brooding  a  nest  of  "isms,"  "lest  one  good  custom 
should  corrupt  the  world."  At  any  rate  we  must, 
to  be  practical,  trust  to  evolution  for  future  combina- 
tions, while  we  make  the  best  use  possible  of  the 
sorry  mess  of  sectarianism  which  our  pious  ancestors 
bequeathed  to  us  along  with  religion  itself.  Salted 
with  saving  good  humor  the  situation  is  not  wholly 
bad.  Theology,  like  politics  and  law,  economics 
and  medicine,  seems  to  create  schools  as  the  most 
available  method  of  securing  progress.  The  only 
entirely  quiet  place,  where  all  can  lie  down  undis- 
turbed by  differences  of  creed,  is  the  last  resort  of 
mortals — the  graveyard.  Few  of  us  prefer  that  snug 
harbor  to  the  turbulent  but  Interesting  world  where 
nearly  everything  we  value  is  challenged  by  some 
differing  soul. 

A  Universalist  merchant  of  our  acquaintance  once 
contributed  to  a  rather  narrowly  orthodox  church  In 
our  town,  because  his  wife  was  a  member  and  be- 
cause, he  said,  the  members  really  seemed  to  feel 
they  could  not  be  good  citizens  without  fear  of  hell, 
and  he   was  interested  In  upholding  morality  In  a 

308 


Moral  and  Religious  Influences 

town  where  he  had  Investments.  He  was  gracious 
enough  to  admit  also  that  they  were  reliable  neigh- 
bors, although  not  as  liberal  as  he  liked. 

The  Protestant  manufacturer  who  employs  many 
Catholics  Is  entirely  logical  If  he  assists  the  good 
priest  to  build  a  beautiful  sanctuary  for  the  rites 
which  are  associated  In  their  minds  with  all  good- 
ness, purity  and  hope,  although  he  himself  agrees 
with  them  only  In  some  fundamentals  of  faith  and 
virtue.  Observation  demonstrates  that  men  must 
be  helped  in  their  own  way,  and  that  It  is  better  to 
outgrow  a  superstition  than  to  have  it  rudely 
snatched  away  by  a  hasty  hand.  A  man  who  is 
large  enough  to  be  an  employer  of  men  ought  to 
be  liberal  enough  to  help  men  save  their  souls  in 
their  own  fashion.  This  Is  the  principle  actually 
adopted  by  the  most  sagacious  employers.  They 
know  that  the  churches  are  necessary  Institutions; 
that  they  have  not  been  created  by  priests  but  have 
grown  out  of  human  needs  and  experiences;  and 
that  beneath  the  external  differences  a  common  life 
is  growing  and  will  assert  Itself  some  day  In  a 
higher  unity  than  anyone  can  now  foresee.  What 
human  nature  has  evolved  to  satisfy  its  deepest 
needs  cannot  be  all  bad;  and  what  is  false  must 
slowly  dissolve,  as  morning  fog,  before  the  majestic 
sun  of  science  and  education.  Plant  schools  and 
churches  side  by  side,  and  the  teacher  will  control 
superstitions  and  the  minister  will  enlarge  horizons 
even  to  Infinity. 

It  Is  a  wonderful  fact  that  the  great  semi-pagan, 

309 


Citizens  in  Industry 


humanist,  modernist  poet,  Goethe,  brings  his  greatest 
work,  "Faust,"  to  its  close  and  climax  with  the  pic- 
ture of  the  happy  retrospective  survey  of  life's 
career  by  a  business  man,  Faust  had  been  in  the 
course  of  a  long  life  a  student,  a  traveler,  a  philos- 
opher, a  sensualist,  a  dramatist,  a  ruler;  had  made 
experiments  with  every  form  of  pleasure;  but  at  the 
summit  of  his  earthly  career  he  crowns  his  days  by 
transforming  a  salt  desert  into  a  fertile  plain  where 
for  ages  to  come  happy  toilers  can  earn  an  honest 
living  by  cooperative  labor.  He  makes  the  very 
devil  himself  serve  his  high  purpose;  commands 
him 

Collect  a  crowd  of  men  with  vigor, 
Spur  by  indulgence,  praise,  or  rigor, 
Reward,  allure,  conscript,  compel! 
Each  day  report  me,  and  correctly  note 
How  grown  in  length  the  undertaken  moat. 

What  an  image  of  the  capitalist  manager  summon- 
ing the  bands  of  workmen  to  realize  the  vision  and 
plans  of  the  practical  man  of  affairs!  He  cannot 
tolerate  the  stagnant  pool  in  which  nothing  thrives. 

This  stagnant  pool  likewise  to  drain 
Even  now  my  latest  and  my  best  achieving. 
To  millions  let  me  furnish  soil, 
Though  not  secure,  yet  free  to  active  toil. 

He  conjures  up  the  picture  of  the  bold,  industrious 
race  which  will  guard  and  mend  his  dyke  and  till  the 
fields  under  its  protecting  wall. 

310 


Moral  and  Religious  Influences 

Up  to  the  brink  the  tide  may  roar  without, 

And  though  it  gnaw,  to  burst  with  force  the  limit, 

By  common  impulse  all  unite  to  hem  it. 

This  aged  adventurer,  eager  in  his  last  days,  with 
blindness  and  night  coming  on,  to  complete  his  work, 
knows  from  experience  that  it  is  not  desirable  to 
bequeath  sloth  to  a  people,  but  only  a  better  oppor- 
tunity for  productive  work,  with  better  appliances. 

Yes!  to  this  thought  I  hold  with  firm  persistence; 
The  last  result  of  wisdom  stamps  it  true: 
He  only  earns  his  freedom  and  existence 
Who  daily  conquers  them  anew. 

As  we  read  this  mighty  song  of  the  modern  poet,  in- 
spirer  of  a  mighty  people,  we  think  of  the  American 
Capitalist  Manager,  the  most  abused  of  all  citi- 
zens, often  a  colossal  sinner,  sometimes  a  cruel 
criminal;  but  always  full  of  imagination,  a  true  poet 
or  maker,  and  often  the  benefactor  of  mankind  on 
a  scale  granted  only  to  the  men  of  such  vast  design 
and  unbroken  courage.  Only  think  what  the  great 
leaders  of  the  business  world  have  recently  achieved 
— the  railway  system  from  Atlantic  to  Pacific,  the 
tunnels  through  mountains,  the  electric  cables  under 
the  oceans,  the  cotton  and  grain  exchanges,  the  bank- 
ing systems,  the  telegraph  and  telephone  systems, 
the  hated  but  beneficent  combinations  of  capital  in 
manufacture  of  Iron,  steel,  agricultural  implements, 
textiles,  and  food  products.     And  these  are  perma- 

3U 


Citizens  in  Industry 


nent  possessions  of  mankind.  If  ever  Socialism  ap- 
propriates this  magnificent  apparatus,  as  it  may  in 
the  unknown  future,  its  historians  will  be  men  of 
science,  and  when  the  bitterness  of  battle  has  become 
a  memory  their  historians  will  be  just,  and  they  will 
recognize  the  genius  of  these  powerful  business  men 
of  our  age.  Will  their  salaried  superintendents  in 
those  coming  times  have  the  same  vigor,  inventive- 
ness, audacity,  persistence,  courage?  At  any  rate, 
these  works  will  remain,  will  be  Improved,  we  may 
hope  may  be  more  humanized  and  socialized,  and  en- 
joyed by  countless  millions. 

And  such  a  throng  I  fain  would  see, — 
Stand  on  free  soil  among  a  people  free! 
Then  dared  I  hail  the  moment  fleeing: 
'Ah,  still  delay — thou  art  so  fair!" 
The  traces  cannot,  of  mine  earthly  being, 
In  seons  perish, — they  are  there! — 
In  proud  fore-feeling  of  such  loftj'  bliss, 
I  now  enjoy  the  highest  moment — this! 

Nor  should  we  forget  the  mystical  hope  which  fol- 
lows this  vision  of  earthly  success  in  usefulness, 
voiced  In  the  song  of  the  angels  as  they  bear  up 
through  the  higher  atmosphere  the  Immortal  part 
of  Faust: 

The  noble  Spirit  now  is  free. 
And  saved  from  evil  scheming; 
Whoe'er  aspires  unweariedly 
Is  not  beyond  redeeming. 
312 


Moral  and  Religious  Influences 

And  if  he  feels  the  grace  of  Love 
That  from  on  high  is  given, 
The  Blessed  Hosts,  that  wait  above, 
Shall  welcome  him  to  Heaven! 


APPENDIX 

The  following  list  of  establishments,  reported  to  have  im- 
portant welfare  work,  is  not  complete,  although  an  earnest 
effort  has  been  made  to  secure  the  addresses  of  a  consider- 
able number  of  typical  institutions  in  the  most  important  in- 
dustrial nations.  Some  firms  and  corporations  are  men- 
tioned in  the  text  which  are  not  repeated  here. 


ENGLAND 

BouRNViLLE.     George  Cadbury 

London.     Green,  McAllen  &  Feilden,  Ltd. 

S.  H.  Johnson  &  Co.,  Engineering  Works 

South  Metropolitan  Gas  Co. 

Wellcome  &  Co.,  Chemists 
Manchester.     Westinghouse  Co. 
NoRTHWiCH.     Brunner,   Mond  &  Co.,   Mfrs.  Alkali  and 

Soda 
Oldham.    Piatt  Bros. 
Port  Sunlight.    William  H.  Lever 
Sheffield.     Cutlers'  Co. 


MISCELLANEOUS 

Maggiwerke.     Mills  in  Germany,  Switzerland,  France  and 

Italy. 

3151 


Citizens  in  Industry 


HOLLAND 

Agenta  Park.    J.  C.  Van  Marken,  Mfrs.  Yeast  &  Spirits 
Delft.     Netherlands  Yeast  and  Spirit  Manufactory 

UNITED   STATES 

Akron,  Ohio.     Goodyear  Tire  &  Rubber  Co. 
Albany,  N.  Y.     John  G.  Myers  Co. 
Allegheny,  Pa.     J.  H.  Heinz  Co. 
Ambridge,  Pa.     American  Bridge  Co. 
Baltimore,    Md.     Consolidated    Gas,    Electric    Light    & 
Power  Co. 

Reinle  Salmon  Co. 
Bayonne,  N.  J.     Tide  Water  Oil  Co. 
Bethlehem,  Pa.     Bethlehem  Steel  Co. 
Beverly,  Mass.     United  Shoe  Machinery  Co. 
Boston,  Mass.     Boston  Elevated  Railway  Co. 

Edison  Electric  Illuminating  Co. 

William  Filene's  Sons  Co. 

Forbes  Lithograph  Co. 

New  England  Telephone  &  Telegraph  Co. 

Thomas  G.  Plant  Co. 

Simplex  Electrical  Co. 

United  Shoe  Machinery  Co. 

Walker  &  Pratt  Mfg.  Co. 
Braddock,  Pa.     Carnegie  Steel  Works 
Briarcliff  Manor,  N.  Y.     Briarcliff  Farms 
Brockton,  Mass.     W.  L.  Douglas  Shoe  Co. 
Brooklyn,  N.  Y.     The  Brooklyn  Daily  Eagle 

Edison  Electric  Illuminating  Co. 

Ironclad  Manufacturing  Co. 
316 


Appendix 


The  Pilgrim  Steam  Laundry  Co. 

J.  H.  Williams  &  Co. 
Buffalo,  N.  Y.     F.  N.  Burt  Co. 
Chicago,  III.     Armour  &  Co. 

Central  Telephone  Exchange 

Chicago  Telephone  Co. 

Commonwealth  Edison  Co. 

Crane  Elevator  Co. 

J.  V.  Farvvell  &  Co. 

First  National  Bank  of  Chicago 

Hart,  Schaffner  &  Marx 

Illinois  Central  Railroad  Co. 

International  Harvester  Co. 

B.  Kuppenheimer  &  Co. 

Libby,  McNeil  &  Libby 

Marshall  Field  &  Co. 

Metropolitan  Trust  &  Savings  Bank 

Montgomery  Ward  &  Co. 

Rand  McNally  &  Co. 

Richie  Paper  Box  Co. 

Sears,  Roebuck  &  Co. 

Southern  Pacific  Railroad  Co. 

Wholesale  Clothiers'  Association 
Cambridge,  Mass.     The  Riverside  Press 
Camden,  N.  J.     C.  Howard  Hunt  Pen  Co. 

Howlandcroft  &  Sons  Co. 
'    Keystone  Leather  Co. 

R.  S.  Wood  &  Co. 
Canton^  Ohio.     Cleveland  Axle  Manufacturing  Co. 
Carlton  Hill,  N.  J,     Standard  Bleachery  Co. 
Chambersburg,     Pa.      The    Chambersburg    Engineering 

Co. 
Cincinnati,  Ohio.     Cincinnati  Milling  Machine  Co. 


Citizens  in  Industry 


Continuation  School 

Co-operative  High  School 

The  Lodge  &  Shipley  Machine  Tool  Co. 

The  Miller,  DuBrul  &  Peter  Manufacturing  Co. 

Procter  &  Gamble 
Cleveland,  O.    Cleveland  Clothing  Factories 

Cleveland  Electric  Illuminating  Co. 

Cleveland  Foundry  Co. 

Cleveland  Hardware  Co. 

Cleveland  Telephone  Co. 

Cleveland  Twist  Drill  Co. 

Consolidated  Street  Railway  Co. 

The  Joseph  &  Feiss  Co. 

Kelly  Island  Line  &  Transportation  Co. 

National  Metal  Trades  Ass'n. 

Sherwin-Williams  Paint  Co. 

Technical  High  School 
Cold  Springs,  N.  Y.    J.  B.  &  J.  M.  Cornell  Co. 
Columbus,     O.       Kilbourne     &     Jacobs     Manufacturing 

Co. 
Cumberland  Mills,  Me.     S.  D.  Warren  &  Co. 
Dayton,  O.     Lowe  Bros.  Co. 

National  Cash  Register  Co. 

Thomas  Manufacturing  Co. 
Denver,  Colo.     The  Colorado  Fuel  &  Iron  Co. 

The  Daniels  &  Fisher  Stores  Co. 

Denver  City  Tramway  Co. 

Denver  Gas  &  Electric  Light  Co. 

The  A.  T.  Lewis  &  Son  Dry  Goods  Co. 
Detroit,  Mich.     Acme  White  Lead  Color  Works 

Anderson  Electric  Car  Co. 

Burroughs  Adding  Machine  Co. 

Ford  Automobile  Co. 

318 


Appendix 


Parke,  Davis  &  Co. 

United  States  Steel  Co. 
Dover,  N.  J.     H.  S.  Peters 
DuQuoiN,  III.     Majestic  Coal  &  Coke  Co. 
East  Aurora,  N.  Y.    The  Roycrofters 
Easthampton,  Mass.     Glendale  Elastic  Fabric  Co. 
Elgin,  III.     Elgin  Watch  Co. 
Elizabeth,  N.  J.     American  Swiss  File  &  Tool  Co. 

Samuel  L.  Moon  &  Sons  Corporation 
Elizabethport,  N.  J.     Hygienic  Chemical  Co. 
Elmwood,  R.  I.     Gorham  Company 
Evansville,  Wis.     Baker  Manufacturing  Co. 
Fall  River,  Mass.     Bourne  Mills 

Brown  Cotton  Mills 
Fitch  BURG,  Mass.     Fitchburg  &  Leominster  Street  Ry.  Co. 
Florence,  N.  J.     R.  D.  Wood  &  Co. 
Gary,  Ind.     United  States  Steel  Co. 
Graniteville,  S.  C.     Graniteville  Manufacturing  Co. 
Greensboro,  N.  C.     Proximity  Manufacturing  Co. 
Greenville,  S.  C.     Monaghan  Mills 
GwYNNE,  Mich.     Cleveland  Cliffs  Iron  Co. 
Harrington,  N.  J.     Driver-Harris  Wire  Co, 
Hartford,  Conn.     Continuation  School 
Hawthorne,  III.     Western  Electric  Co. 
HoBOKEN,  N.  J.     The  Adolph  Raudnitz  Co. 

Keuffel  &  Esser  Co. 

New  York  Switch  &  Crossing  Co. 
Homestead,  Pa.     Carnegie  Steel  Works 
HoPEDALE,  Mass.     Draper  Company,  Loom  Industry 
Ilion,  III.     The  Remington  Typewriter  Co. 
Indianapolis,  Ind.     T.  B.  Laycock  Manufacturing  Co. 
Ishpeming,  Mich.     Cleveland  Cliffs  Iron  Co. 
Jersey  City,  N.  J.     Gibson  Iron  Works  Co. 

319 


Citizens  in  Industry 


JoLiET^  III.     Illinois  Steel  Works 
Kansas  City,  Mo,     George  B.  Peck  Dry  Goods  Co. 
Lawrence,  Mass.     American  Woolen  Co. 
Los  Angeles,  Cal.     The  Broadway  Department  Store 
Ludlow,  Mass.     Ludlow  Manufacturing  Association 
Lynchburg,  Va.     Lynchburg  Cotton  Mills 
Mansfield,  Mass.     Lowney's  Chocolate  Co. 
MiDDLETOWN,  O.     American  Rolling  Mills  Co. 
MiLFORD,  Mass.     Milford  Shoe  Co. 
MiLLViLLE,  N.  J.     R.  D.  Wood  &  Co. 
Milwaukee,   Wis.     Hoffman   &  Billings  Manufacturing 
Co. 

Milwaukee  Electric  Light  Co. 

Patton  Paint  Co. 
MiSHAWAKA,  Ind.     Dodgc  Manufacturing  Co. 
MoLiNE,  III.     Deere  &  Co. 
New  Haven,  Conn.     Boardman  School 
New  York,  N.  Y.     American  Iron  &  Steel  Inst. 

Bloomingdale  Bros.  Employees'  Mutual  Aid  Society 

Brewster  &  Co. 

Colgate  &  Co. 

Consolidated  Gas  Company 

Greenhut-Siegel-Cooper  Co. 

Hotel  Astor 

Interborough  Rapid  Transit  Co. 

J.  R.  Keiser,  Inc. 

R.  H.  Macy  &  Co. 

The  McNutt  Non-explosive  Manufacturing  Co. 

Metropolitan  Life  Insurance  Co. 

National  Biscuit  Co. 

New  York  Edison  Co. 

New  York  Evening  Post 

New  York  Telephone  Co. 
320 


Appendix 

The  Suit  and  Skirt  Industry 

L.  E.  Waterman  Co, 

Werlin  Quadrant  Davit 
Newark,  N.  J.     Carter,  Howe  &  Co. 

The  Ferris  Bros.  Co. 

National  Saw  Co. 

Weston  Electrical  Instrument  Co. 
Newton,  N.  J.     The  Valentine  &  Bently  Silk  Co. 
Niagara  Falls,  N.  Y.     The  Natural  Food  Co. 

Niagara  Development  Co. 

Niagara  Falls  Power  Co. 

Shredded  Wheat  Co. 
North  Plymouth,  Mass.     Plymouth  Cordage  Co. 
NoRWALK,  O.     A.  B.  Chase  Co. 
Peacedale,  R.  I.     Peacedale  Manufacturing  Co. 
Pelzer,  S.  C.     Pelzer  Manufacturing  Co. 
Philadelphia,  Pa.     Baldwin  Locomotive  Works 

Burnham,  Williams  &  Co. 

Curtis  Publishing  Co. 

Thomas  Devlin  Manufacturing  Co. 

Fels  &  Co. 

Gimbel  Bros. 

Philadelphia  Electric  Co. 

Philadelphia  Rapid  Transit  Co. 

The  Standard  Roller  Bearing  Co. 

John  B.  Stetson  Co. 

Strawbridge  &  Clothier 

Wanamaker's 
Pittsburgh,  Pa.     Amalgamated  Association  of  Iron,  Steel 
&  Tin  Workers 

Equitable  Life  Assurance  Society  of  the  United  States 

J.  H.  Heinz 

National  Safety  Demonstration,  Bureau  of  Mines 
321 


Citizens  in  Industry 


Pittsburgh  Coal  Co. 
East  Pittsburgh.    Westinghouse  Electric  &  Manufac- 
turing Co. 
PoMPTON,  N.  J.     Ludlum  Steel  &  Springs  Co. 
Portland,  Ore.  "  Eastern  &  Western  Lumber  Co. 
Proctor,  Vt.     Vermont  Marble  Co. 
Providence,  R.  I.     Brown  &  Sharpe  Manufacturing  Co. 

Gorham  Manufacturing  Co. 

Providence  Engineering  Works 

Procasset  Worsted  Co. 
Pueblo,  Colo.     Colorado  Fuel  Sc  Iron  Co. 
Pullman,  III.     Pullman  Palace  Car  Co. 
RoEBLiNG,  N.  J.     Roebling  Co. 
Salem,  N.  J.     Avars  Machine  Co. 
San  Francisco,  Cal.     Hale  Bros. 
Saugerties,  N.  Y.     Saugerties  Manufacturing  Co. 
Sayreville,  N.  J.     Sayre  &  Fisher  Co. 
St.  Louis,  Mo.     Ames  Shovel  &  Tool  Co. 

N.  O.  Nelson  Manufacturing  Co. 

Rankin  Trade  School 
Schenectady,  N.  Y.     General  Electric  Co. 
ScRANTON,  Pa.     Scran  ton  Railway  Co. 
Seattle,  Wash.     The  Seattle  Electric  Co. 
Sparrows  Point,  Md.     Maryland  Steel  Co. 
Stamford,  Conn.     Yale  &  Tow^ne  Manufacturing  Co. 
Syracuse,  N.  Y.     The  Solvay  Process  Co. 
Trenton,  N.  J.     John  Maddock  &  Sons 
Union,  N.  J.     The  Clifton  Silk  Mills 
Waltham,  Mass.     American  W^altham  Watch  Co. 
Watertown,  Mass.     Walker  &  Pratt  Manufacturing  Co. 
West  Lynn,  Mass.     General  Electric  Co. 
Westbrook,  Me.     S.  D.  Warren  &  Co.,  Cumberland  Mills 
Wheeling,  Va.     Wheeling  Steel  &  Iron  Co. 

322 


Appendix 

WiLMERDiNG,  Pa.     Westinghouse  Airbrake  Co. 
Wilmington,  Del.     Joseph  Bancroft  &  Sons  Co. 


GERMANY 

Altena.     Basse  &  Selve 

Altona.     C.  E.  Gatke,  Glass  Factory 

Amoeneburg.     DyckerhofE  &  Sohne,  Portlandzementfabrik 

Augsburg.     Augsburger  Maschinenfabrik 

Augsberger  Kammgarnspinnerei 
Beckingen.     Kleineisenzeugfabrik — formerly    Karcher    & 

Co. 
Berlin.    Allgemeine  Elektrfcitats  Gesellschaft 

Berlin  Banking  House  (S.  Bleichroder) 

Bolle,  C. 

Borsig,  A.,  Machine  Factory 

Fresse,  Heinrich 

Gubener  Hutfabrik 

Haneburg-Berliner  Jalousiefabrik 

Heymann's,  Carl,  Verlag 

Lowe,  Ludwig 

Maggiwerke 

Resag,  F.  F.,  Zichorienfabrik 

Schultheiss'  Brauerei  Aktiengesellschaft 

F.  A.  Seiler 

Siemens  &  Halske 

Spindler,  W.,  Farberei  und  Chemischen  Waschanstalte 
Betzdorf.     Jungschen  Lokomotivfabrik 
Billefeld.     Velhagen  &  Klasing 
BoTTiNGERHEiM.     Grosz     Leder     Farbenfabrik — formerly 

Fried.  Bayer  &  Co. 
Brandenburg.     Metzenthin  &  Sohn 
Bremen.     Leopold,  Engelhardt  &  Biermann 

323^ 


Citizens  in  Industry 


Breslau.    Prussian  Royal  Mines. 

Wiskott,  C,  T.,  Fine  Printing  and  Lithographing 
Cassel.     Wegmann  &  Co. 
Clausthal.     Koniglichen  Obergamts 

Prussian  Royal  Mines 
CossKANNSDORF.     Franz,  Dietel  Sc  Schmitt 
Crefeld.     Krahnen  &  Gobbers 
Danzig.     Imperial  Marine,  Technical  Instruction 
Dessau.     Deutschen  Kontinental  Gasgesellschaft 

Schultheiss'  Brauerei  Aktiengesellschaft 

F.  A.  Seiler 

Verein  Anhaltischer  Arbeitgeber 
Dietrichsdorf.     Howaldtsvverke 
DoHREN.     Wollwascherei  und  Kammerel 
Dortmuri.     Prussian  Royal  Mines 
Dresden.     Heyden  Aktiengesellschaft 

Royal  Saxony  State  Railway 
Driesen.     C.  Stolz 
DiJREN.     Scholler  Bucklers  &  Co. 
DiJssELDORF.     Bruckmann  &  Co. 
EiSLEBEN.     Mansfelder  Kuferschienfen  bauenden  Gewerk- 

schaft 
Elberfeld.        Farbenfabriken    (formerly    Fried.    Bayer   & 

Co.) 
Elbing.     Loeser  &  Wolff,  Zigarrenfabriken 

Schichau-Werft 
Essen.     Theodore  Goldschmidt 

Friedrich  Krupp 

Emil  Wolff 
Frankfurt.    Gold-  und  Silberscheideanstalt 

Hartmann  &  Braun 

Heinsins,  Friedrich,  Zigarrenfabrik 

J.  Pfungst,  Schmirgelscheibenfabrik 


Appendix 


Freiburg.     Karl  Mez 

Friedrichsort.     Kaiserlichen  Torpedowerkstatt 
Gerresheim.     Gerresheimer  Glashuttenwerke 
Gladbach.     Brandts,  Fr.  Mechanische  Weberei 

M.  May  &  Co. 
GoLZERN.     Schroderschen  Papierfabrik 
GoTTiNGEN.     Levin,  Hermann,  Woolengoods  Factory 
Griez.     Arnold,  Friedrich,  Textilwarenfirma 
GuBEN.     C.  G.  Wilke,  Hutfabrik 
GuEDLiNBURG.     Arnot  Gerb 
Halle.     Prussian  Royal  Mines 
Hamburg.     Hamburg  American  Line  S.  S. 
Hanover.     Farbenfabrik  Gunther  Wagner 
Harburg.    Gummi  Kamm  Kompagnie 

Jutefabrik 
Heilbrunn.     Bruckmann  &  Sons,  Silverware  Factory 
Itzehoe.     Alsenchen  Portlandzementfabrik 

Chas.  de  Vos  &  Co. 
Jena.     Karl  Zeiss,  Optical  Works 
Karlsruh.     Wolf  und  Sohn,  Parfumerie  und  Toilettenar- 

tikelfabrik 
Karnax.     Hugo  Stinnes 
Kiel.     Technical  Instruction 

Werft  Kaiserlichen 

Imperial  Marine 

W.  Spindler  Hochster  Farbwerke 
Koln.     Demhardt  &  Co. 

Leonhard  Fietz 

W.  A.  Hospelt,  Fabriken  fur  Chemische  Bleiprodukte 

W.  Lyondecker  &  Co. 

Rottweiler  Pulverfabriken  Vereinigten 

Van  der  Zypen  &  Charlier  Co.,  Ltd. 
Kotzenau.     Eisenwerks  Marienhiitte 


Citizens  in  Industry 


Kriebstein.     Kiibler  &  Niethammer,  Papierfabrik 
KiJCHEN.     Staub  &  Co. 

Lauchhamme.     Altiengesellschaft  Lauchhamme 
Laurahutten.     W.  Fitzner,  Boilerworks 
Leinhausen.    Koniglichen  Eisenbahnhauptwerkstatt 
Leipzig.     Ernest  Kirchner  &  Co. 

Koerting  &  Mathusen 

C.  Krause,  Machine  Works 

Mansfield,   Crh.  Maschinenfabrik 

Leipsiger  Wollkamrherei 
Lennex.     John  Wulfing  &  Sohn,  Kammgarnspinnerei 
Leverkusen.      Farbenfabrik    (formerly    Fried.    Bayer    & 

Co.) 
LuDWiGSBURG.     Anilinfabrik 

Badischen  Anilin  und  Sodafabrik 

Heinrich  Francke  Sons,  Zichorienfabrik 
Luxemburg.     Deutsch  Luxemburgischen  Bergwerks 
Magdeburg.     Dr.  Eugen  Poke 

R.  Wolf 
Mainkur.     Anilinfarbenfabrik    (formerly    Leopold,    Cas- 

sella  &  Co.) 
Manneheim.     Lanz 

Zellstofffabrik  Waldhof 
Mettlach.       Villery    &    Bock,     Steingut    und     Mosaik- 

fabrik 
Mulburg.     Aktienzuckerfabrik 
Mulhausen.     Schaffer  &  Co. 
MiJNCHEN.     Brants,  Friedrich 
Nerdingen.     R.  Wedekind  &  Co.,  Ltd.,  Chemischefabrik 

Weiler  ter  Meer  Chemischen  Fabriken 
Neunkirchen.     Stumm,  Gerb. 
Neusalz.    J.  D.  Gruschwitz  SfSohne,  Spinnerei 
Neviges.     D.  Peters  &  Co. 

326 


Appendix 

NiEDERWiNG.     Gelsenkirchener  Bergwerks 
NuRNBERG.      Elektrizitatsaktiengesellschaft     (formerly 
Schuckert  &  Co.) 

Royal  Bavarian  State  Railway 

Siemens  Schuckertwerke 

Die  Vereinigte  Maschinenfabrik 
Oberzell.     Konig  &  Bauer,  Maschinenfabriken 
OcHTRUP.     Laurenz,  Gerb. 
Offenbach.     Collet  &  Engelhardt 
OsNABRUCK.     George  Marienhiittc 
Passan.     Brauerei  Franz  Stockbauer 
PiNNEBERG.     Hermann  Wuppermann 
Posen.     Kreise  Neutomischel  Herrschaft  Wonson 
Potsdam.     Gebr.  Soran — Schneidermiihle 
Remscheid.     Bergische  Stahlindustrie 
RoTHE  Erde.     Aachener  Hiittenaktienverein 
Saarbruck.     Royal  Prussian  Mines  (Koniglich  Preussiche 

Bergverwaltung) 
Saarrevier.     Burbacher  Hiitte 

Halberger  Hiitte 
Scheffbek.     Norddeutsche  Jutespinnerei  und  Weberi 
ScHLiERBACH.     Wachtersbacher  Steingutfabrik 
Schonebeck.     Chemischenfabrik  Hermania 
Spandan.     Koniglichen  Munitionsfabrik 
Spindlersfeld.     W.  Spindler  Farbei  und  Chemischen 
Stadbach.     BaumwoUspinnerei  &  Weberei 

Spinnerei 
Stein.     A.  W.  Faber  Bleistiftfabrik 

Kohlenbergwerkes  Rheinpreussen 
Stuttgart.    G.  Kuhn  Machine  &  Boiler  Works 
SuCHTELN.     Gebruder  Rossie 

Waldenburg.     Fiirstlich  Pless'chen  Guterverwaltung 
WiTKOWiTZ.     Witkowitz   Ironworks 


Citizens  in  Industry 


Worms.     Doerr  &  Reinhart,  Leather  Plant 

Heyl,  Cornelius,  Lederfabriken 
WuRTTEMBURG.      Wurttembcrgischen  Metallwaarenfabrik, 

Geislingen. 
WuRZBURG.     Biirgerlichen  Brauhauses 
Zalenz.     G.  V.  Geische's  Erben 


FRANCE 

The  industrial  centers  of  France  have  a  large  number  of 
excellent  illustrations  of  "patronage."  The  influence  of 
Le  Play,  Leclaire,  and  many  other  magnanimous  leaders  has 
been  fruitful  in  this  field.  Some  have  been  mentioned  in  the 
text  and  others  are  listed  in  books  and  articles  cited. 


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"Officers'  and  Workers'  Benefit  Funds  in  German  Stock 
Companies."     Soziale  Praxis,  xxi,  Sept.  26,  1912. 

The  Operating  Bulletin,  published  by  Chicago  Telephone  Co. 

Rail  y  Wire,  June,  19 13,  Milwaukee  Electric  Railway  & 
Light  Co. 

Review  of  Reviews,  xxxviii,  450. 

Santa  Fe  Railroad's  booklets  on  "Safety." 

The  Telephone  Review,  published  by  N.  Y.  Telephone  Co. 

337 


Citizens  in  Industry 


U.  S.  Shoe  Machinery  Company's  Pamphlet,  "The  Story  of 

the  Three  Partners," 
The  Wooltex  NewSj  published  by  H.  Black  &  Co.,  Cleveland, 
Ohio. 

Telephone  Employees 
Outlook,  Ixxxii,  231-239. 
Review  of  Reviews,  xxxv,  579-580. 
Survey,  xxiv,  60-64. 
Survey,  xxx,  621-623. 
World  To-Day,  xx,  239-241. 
Butler,  E.  B.     Women  and  the  Trades,  pp.  282-292, 

"Investigations  of  Telephone  Companies."     Sixty-first 
Congress,  Second  Session,  1909-1910,  xlix. 
Social  Secretaries 
Craftsman,  x,  489-493. 
Harpers  Weekly,  lii,  22-24,  July  n,  1908. 

lii,  22-23,  July  18,  1908. 

Ivi,  11-12,  Mar,  9,  1910  (Men), 
Review  of  Reviews,  xxxiv,  223-224;  xl,  90-91. 


INDEX 


Accident  insurance,  151-152. 
Addams,  Jane,  cited,  192. 
Adler,  Felix,  on  child  labor,  14. 
Alcoholism,  80-81. 
Alexander,   M.  W.,  on  safety, 

112. 
Allen,  W.  H.,  cited,  266. 
Arbitration,  262-263. 
Art,  222. 
Association  of  Iron  and  Steel 

and    Electrical    Engineers, 

111-112. 

Barnum,  Gertrude,  cited,  246. 
Benefit  funds,  158-159. 
Boehmert,  122. 
Bowen,  cited,  189. 
Brandeis,  Louis,  on  charge  of 

depreciation,  162. 
on  working-women,  92-93. 
British  Cooperative  Stores,  120. 
Buecher,  Karl,  cited,  186. 
Building  and  loan  associations, 

239. 

Campbell,    Robert    D.,    cited, 

103. 
Capitahst  managers,  2-6,  187. 
Chandler,   W.    L.,  cited,    158- 

159. 
Chapin,   R.    C,   standard   for 

dwellings,  173. 
Child  labor,  215-216. 
Church,  304-306. 
federation,  307. 
Cleanhness,  69. 
Contagious  diseases,  73, 


Continuation  schools, 
German,  206-207. 
United  States,  210. 

Cooperation,     Rochdale    Plan, 
239-240. 

Cooperative    Safety    Congress, 
288. 

Cooperative    schools,    associa- 
tions of,  21. 

Cooperative  stores,  150. 

Corporations,  7. 

Cotton  mills,  condition  in,  45, 
46. 

Crane,  R.  T.,  on  employees  as 
stockholders,  132. 

Culture,  for  adults,  220-221.      ! 

De   Forest  and   Veiller,   cited, 

178. 
Democracy  in  industry,  265. 
Devine  E.  T.,  cited,  271. 
Dewey,     John,     on     industrial 

education,  208-209. 
Dining-rooms,     in    workshops, 

76-77. 
Dramatic  entertainment,  229- 

230. 
Duncan,  cited,  20. 

Education,  in  political   science, 

240-241. 
Eleanor  clubs,  198. 
Emerson,  cited,  142. 
Employees,  homes  of,  163. 

rights  of,  163. 

stock  ownership  by,  139. 
Erdmann  Act,  261. 


339 


Index 


Evans,  Dr.  W.  A.,  on  working- 
men's  compensation  acts, 
114. 

Factory  legislation,  56. 
Fay,  on  cooperation,  239. 
Frey,  John  P.,  cited,  145 

on  welfare  work,  27. 
Fines,  162. 

Fitch,  John  A.,  workingmen's 
pensions,  167. 

German  progress,  reasons  for, 
203. 

Germania  Insurance  Company, 
100. 

Godfrey  on  scientific  manage- 
ment, 214-217. 

Gompers,  on  arbitration,  262- 
263. 
on  welfare  work,  25. 

Goodfellow  club,  38-39. 

Great  industry,  2-3. 

Harriman,    Mrs.    J.     Borden, 

cited,  46. 
Hartness,  cited,  21. 
Healy,  Dr.,  cited,  71. 
Henderschott,  F.  C,  cited,  202. 
Herkner,  Anne,  on  child  labor, 

215-216. 
Holmes,  J.  A.,  on  cooperation, 

23. 
Homes,    for   working    boys    in 

Germany,  190. 
for  working  girls,  194. 
Hours  of  labor,  85-88 
Housekeeping,    instruction    in, 

218 
Houses,  German  workingmen's, 

175. 
tenement,  178. 
workingmen's,  171-172. 
Housing  conditions,  Liverpool, 

171-172. 


Hygienic  instruction,  82. 
Hygienic  measures  in  workshop, 
74. 

India,  working  girls'  homes  in, 
195. 

Industrial  accidents,  59-60. 

Industrial  commission,  Wiscon- 
sin, 61. 

Industrial  efficiency,  49,  142. 

Industrial  Revolution,  28. 

Industrial      Safety,      National 
Council  of,  63,  103-105. 

Ingalls,  Melville  E.,  on  profit- 
sharing,  125. 

Insurance  companies,  113. 

International   Harvester   Com- 
pany, accident   indemnity 
of,  155-156. 
report  of,  100. 
sick  benefits  of,  155-156. 

Invention,    encouragement    of, 
145-147. 

Japan,  working  girls'  homes  in, 
194. 

Kales,  cited,  243. 

Kley,  B.,  on  housing  conditions, 

175. 
Kropotkin,  cited,  179. 

Labor  disputes,  causes  of,  301. 

Landscape  gardening,  220. 

Legislation,  237. 

Library,  advantages  of,  296. 

Life  insurance,  162. 

Living  wage  standard,  254. 

Loans,  151. 

Lopez,  on  social  secretary,  283. 

Low,  Seth,  cited,  164. 

Manhattan    Trust    Company, 

101 
IManual  training  schools,  205. 


340 


Index 


Maule,  Mary  K.,  on  savings  of 
shop  girls,  149. 
on  working  girls'  homes,  196. 
McCormick,   C.  H.,  on  indus- 
trial problems,  8. 
Medical  e.xamination,  71. 
Moral  standards,  289. 
Moskowatz,  cited,  249. 
Munsterberg,  Hugo,  cited,  259. 
Music,  231-232. 

National  Association  of  Manu- 
facturers, 112,  212. 

National  Metal  Trades  Asso- 
ciation, 211. 

Natorp,  cited,  230. 

Neighborhood  centers,  242-243. 

Neighborhood  improvement  as- 
sociations, 225. 

Newlands  Act,  262. 

Octavia  Hill  method,  185. 
Overtime,  84. 

Page,  on  trade  morals,  290. 
Paris,  working  girls'  homes  in, 

197. 
Patten,  cited,  6. 
Patthoff,  Dr.  Heinze,  cited,  17. 
Pensions,   156. 

private,  166. 

workingmen's,  41. 
Piece-price,  134-135. 
Post,  C.  W.,  on  welfare  work, 

21. 
Premiums  for  fidelity.  137-138. 
Price,  C.  W.,  cited,  13. 
Profits,  annual  distriburion  of, 

133. 
Profit-sharing,  117flf. 

Ford    Automobile    Co.    and, 
180-181. 

Halsey  method  of,  136. 

in  France,  121. 

in  Germany,  122. 


in  Great  Britain,  120. 

in  United  States,  123. 

objections  to,  130. 

results  of,  128. 
Protection,  of  giris,  297. 

of  women,  91-96. 
Pullman  Co.,  model  town  of 
176. 

Ramsey,  F.  W.,  cited,  22. 
Reading-rooms,  223-225. 
Recreation,  for  employees,  90- 

91. 
Recreation  rooms,  89. 
Religion,  dangers  and  obstacles 

in,.  292-295. 
Representation  in  management. 

238. 
Rest,  83. 

Riis,  Jacob,  cited,  171. 
Rockefeller,   John   D.,   Jr.,   on 

democracy     in     industry, 

264-265. 
Ruskin,  John,  cited,  50. 

Safety,  53-54. 

museums  of,  68. 
Safety  devices,  105-106. 
Safety  health  measures,  cost  of, 

98. 
Safety  inspector,  63-64. 
Savings,  148. 
in  mercantile  estabHshments, 

149. 
Savings  banks  for  minors,  149. 
Schloss,  D.  A.,  117. 
Scientific     management,     140- 

141,  213. 
Shadwell,     on      profit-sharing, 

124. 
Shaw,  L.  G.,  on  inspection  of 

workingmen's       dwellings, 

181-184. 
Sickness  and  accident  benefits, 
279. 


341 


Index 


Small,  A.  W.,  on  modern  indus- 
try, 165. 
Social   insurance   in   Germany, 

161. 
Social  secretary^  226f!'. 

educational  preparation  of  a, 

273. 
natural    qualifications    of    a, 
272. 
Socialism,  50,  51,  165,  235. 
Socialists,  4. 
Spoils  system,  163. 
Standard  of  living,  254-255. 

Taylor,  F.  W.,  cited,  140-141, 

144. 
Trade  unions,  235. 
Tolman,  W.  H.,  welfare  work, 

22. 
Tuberculosis,  72,  73,  81. 

Vance,  Truman  S.,  on  Y.  ]\I.  C. 

A.  welfare  work,  300. 
Vanderlip,     Frank,     on    social 

legislation,  237. 
Van     Marken,    J.     C,     cited, 

138. 
Ventilation,  79. 
Visiting  nurse,  98. 
Vocational  ability,  215. 
\'ocational  education,  202ff. 


\'oluntary  organization  of  bet- 
terment methods,  245ff. 

United    States    Steel    Corpora- 
tion, 100. 
University  extension,  226-228. 

Wages,  251. 

of  working  girls,  191-192. 
Ward,  L.  F.,  cited,  201. 
Warren,  B.  S.,  responsibility  of 

employers,  57-58. 
Welfare  work,  17-21. 
advantages  of,  130-131. 
construction  camps  and,  301- 

303. 
German,  30-31. 
of    Illinois    Steel    Company, 

34-41. 
type  of  American,  32-33. 
Williams,     Arthur,     on  educa- 
tion, 202. 
on  profit-sharing,  126. 
Williams,  John,  on  the  working- 
man,  28. 
Women  secretaries,  280-282. 
Workmen's  compensation,  153. 
Wuest,  Robert,  cited,  212. 

Yoimg  Men's  Christian  Asso- 
ciation, 297. 


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